Middlefield Banc Corp. (NASDAQ: MBCN) today reported financial
results for the three and twelve-months ended December 31, 2023.
2023 Financial Highlights (on a year-over-year
basis unless noted):
- Net income increased 10.8% to a
record $17.4 million
- Earnings were $2.14 per diluted
share compared to $2.59 per diluted share, reflecting a 34.5%
increase in the average diluted shares outstanding related to the
Liberty Bancshares, Inc. merger
- Pre-tax, pre-provision net income increased 25.7% to a record
$23.8 million(1)
- Net interest income increased 29.9%
to a record $65.2 million, supported by a strong net interest
margin of 4.04%
- Total loans were a record $1.48
billion, compared to $1.35 billion at December 31, 2022
- Total deposits were $1.43 billion,
compared to $1.40 billion at December 31, 2022
- Return on average assets was 0.99%,
compared to 1.17%
- Return on average equity was 8.83%,
compared to 11.25%
- Return on average tangible common
equity(1) was 11.20%, compared to 12.95%
- Strong asset quality continues with
nonperforming assets to total assets of 0.60% at year end
- Allowance for credit losses was
1.47% of total loans, compared to 1.07%
- Equity to assets remained strong at
11.28%
- Book value increased 6.0% to $25.41
per share
- Declared $0.85 per share in
dividends, a 4.9% increase
(1) See non-GAAP
reconciliation under the section “GAAP to Non-GAAP
Reconciliations”
Ronald L. Zimmerly, Jr., President and Chief
Executive Officer, stated, "By many accounts, 2023 was a historic
year for Middlefield as we successfully integrated the Liberty
Bancshares, Inc. (“Liberty”) merger and ended the year with record
total assets, stockholders’ equity, and annual net income. Through
the Liberty merger, we expanded Middlefield’s footprint into
Western Ohio and deepened our exposure in Central Ohio – creating
one of the leading independent community banks in the state. In
addition, we enhanced our management team and added seasoned Ohio
bankers with deep expertise across Commercial, Business, and
Consumer Banking as we remain focused on developing talent from
within the Company and attracting leading bankers from outside our
organization. Finally, we added new resources to drive deposit
growth in a more competitive environment, enhanced our small
business lending capabilities, and made strategic adjustments to
our operating structure to provide more value to our retail
customers. These actions have significantly enhanced our
infrastructure, which we believe will allow us to serve our
communities better, provide our team members more opportunities,
and support Middlefield’s growth."
"As we look to 2024, we are focused on executing
against our long-term strategic plan, benefiting from the synergies
of the Liberty merger, and realizing the value from the investments
we have made across our business this past year. While we expect
uncertainty about FOMC monetary policies and their impact on
national economic conditions in 2024, economic activity and
employment within our Ohio markets remain stable. We believe 2024
will be another good year of balance sheet growth and
profitability, and we remain committed to creating long-term value
for our customers, communities, team members, and shareholders,"
concluded Mr. Zimmerly.
Income StatementNet interest income for the
2023 twelve-month period increased 29.9% to $65.2 million, compared
to $50.2 million for the same period last year. For the full year,
the net interest margin was 4.04%, compared to 4.08% last year. Net
interest income for the 2023 fourth quarter increased 9.2% to $15.4
million, compared to $14.1 million for the 2022 fourth quarter. The
net interest margin for the 2023 fourth quarter was 3.70%, compared
to 4.23% for the same period of 2022.
Pre-tax income for the 2022 twelve-month period benefited from
$1.2 million of accelerated net fees associated with the Paycheck
Protection Program ("PPP").
For the 2023 twelve-month period, noninterest income was $6.7
million, compared to $6.7 million for the same period last year.
Noninterest income for the 2023 fourth quarter was $1.6 million,
compared to $2.4 million for the same period the previous year.
For the 2023 twelve-month period, noninterest expense was $48.1
million, compared to $38.0 million for the same period last year.
Higher year-over-year expenses for the year ended December 31,
2023, were primarily associated with the Liberty merger and higher
personnel expenses, partially offset by a decrease in
merger-related costs. Noninterest expense in the 2023 fourth
quarter was $12.2 million, compared to $12.3 million for the 2022
fourth quarter.
Net income for the 2023 twelve-month period ended December 31,
2023, was $17.4 million, or $2.14 per diluted share, compared to
$15.7 million, or $2.59 per diluted share for the same period last
year. Net income for the 2023 fourth quarter ended December 31,
2023, was $3.5 million, or $0.44 per diluted share, compared to
$3.5 million, or $0.53 per diluted share, for the same period last
year.
Pre-tax, pre-provision net income for the 2023 twelve-months was
$23.8 million, an increase of 25.7% from $18.9 million last year.
For the 2023 fourth quarter, pre-tax, pre-provision net income was
$4.8 million, an increase of 15.7% from $4.2 million last year.
(See non-GAAP reconciliation under the section “GAAP to Non-GAAP
Reconciliations”).
Balance SheetTotal assets at December 31, 2023,
increased 8.0% to $1.82 billion, compared to $1.69 billion at
December 31, 2022. Total loans at December 31, 2023, were $1.48
billion, compared to $1.35 billion at December 31, 2022. The 9.3%
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 December 31, 2023, increased 8.5% to $1.62
billion, compared to $1.49 billion at December 31,
2022. Total deposits at December 31, 2023, were $1.43
billion, compared to $1.40 billion at December 31, 2022. The 1.8%
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 28.1% of total
deposits at December 31, 2023, compared to 35.9% at December 31,
2022. At December 31, 2023, the Company had brokered deposits of
$90.3 million, compared to $5.0 million at December 31, 2022.
The investment securities available for sale portfolio was
$170.8 million at December 31, 2023, compared with $165.0 million
at December 31, 2022.
Michael Ranttila, Chief Financial Officer,
stated, “Asset quality remains historically strong due to our
conservative underwriting standards and balanced portfolio
composition, as well as steady economic trends across our Central,
Western, and Northeast Ohio markets. During the fourth quarter, we
sold an other real estate owned property that was on our balance
sheet for $5.8 million for a loss of $173,000. In addition, during
the fourth quarter, we downgraded one self-storage loan in the
Southwest Ohio market, which resulted in an approximately $3.2
million increase in nonperforming loans since the 2023 third
quarter. The 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 ended the quarter
with $60.8 million in cash and cash equivalents, $170.8 million in
available for sale investment securities, and $618.1 million of
maximum borrowing capacity at the Federal Home Loan Bank,
demonstrating ample liquidity. In addition, market values
associated with our securities available for sale improved during
2023, resulting in a lower level of unrealized losses, which were
7.8% of total stockholders’ equity at December 31, 2023, compared
to 11.2% at December 31, 2022. We remain confident that we have
sufficient liquidity to navigate a more complex economic
environment while continuing to support our growth strategies and
capital allocation priorities and maintain the available for sale
investment portfolio."
Middlefield's CRE portfolio included the following categories at
December 31, 2023:
CRE Category |
|
Balance(in thousands) |
|
Percent of CRE Portfolio |
|
Percent of Loan Portfolio |
Multi-Family |
|
$ |
82,506 |
|
12.4 |
% |
|
5.6 |
% |
Office Space |
|
$ |
81,032 |
|
12.1 |
% |
|
5.5 |
% |
Shopping Plazas |
|
$ |
75,024 |
|
11.3 |
% |
|
5.1 |
% |
Self-Storage |
|
$ |
60,233 |
|
9.0 |
% |
|
4.1 |
% |
Hospitality |
|
$ |
40,155 |
|
6.0 |
% |
|
2.7 |
% |
Senior Living |
|
$ |
37,543 |
|
5.6 |
% |
|
2.5 |
% |
Other |
|
$ |
291,138 |
|
43.6 |
% |
|
19.7 |
% |
Total CRE |
|
$ |
667,631 |
|
100.0 |
% |
|
45.2 |
% |
Stockholders' Equity and DividendsAt December
31, 2023, stockholders' equity was $205.7 million compared to
$197.7 million at December 31, 2022. The 4.0% 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
acquisition of stock under the Company's stock repurchase program.
On a per-share basis, shareholders' equity at December 31, 2023,
was $25.41 compared to $23.98 at December 31, 2022.
At December 31, 2023, tangible stockholders' equity(1) was
$162.7 million, compared to $158.3 million at December 31, 2022. On
a per-share basis, tangible stockholders' equity(1) was $20.10 at
December 31, 2023, compared to $19.19 at December 31, 2022. (1)See
non-GAAP reconciliation under the section “GAAP to Non-GAAP
Reconciliations”.
For the 2023 full year, the Company declared cash dividends of
$0.85 per share, a 4.9% increase from $0.81 per share for the same
period last year. In the 2023 fourth quarter, the Company declared
a $0.05 special cash dividend in addition to its regular cash
dividend payment of $0.20. The Company declared a $0.10 special
cash dividend in the 2022 fourth quarter.
At December 31, 2023, the Company had an equity-to-assets ratio
of 11.28%, compared to 11.71% at December 31, 2022.
Asset Quality
For the 2023 twelve-month period and fourth
quarter, the Company recorded provisions for credit losses of $3.0
million and $0.6 million, respectively, versus no provisions for
credit losses for the same periods last year. The increase is due
to the January 1, 2023 adoption of ASU 2016-13, Financial
Instruments – Credit Losses – Topic (326): Measurement of Credit
Losses on Financial Instruments. Upon adoption, the reserve for
credit losses increased by $5.4 million.
For the year ended December 31, 2023, the
Company had net recoveries of $31,000, or 0.00% of average loans,
annualized, compared to net recoveries of $96,000, or 0.01% of
average loans, annualized, for the year ended December 31, 2022.
Net recoveries were $117,000 or 0.03% of average loans, annualized,
during the 2023 fourth quarter, compared to net charge-offs of
$94,000, or 0.03% of average loans, annualized, at December 31,
2022.
Nonperforming loans at December 31, 2023, were
$10.9 million, compared to $2.1 million at December 31, 2022.
Nonperforming assets at December 31, 2023, were $10.9 million,
compared to $7.9 million at December 31, 2022. The allowance for
credit losses at December 31, 2023, stood at $21.7 million, or
1.47% of total loans, compared to $14.4 million, or 1.07% of total
loans at December 31, 2022.
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 December 31,
2023. 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 that are
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
tables following Consolidated Financial Highlights
below.
FORWARD-LOOKING STATEMENTSThis
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 a number of 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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31, |
|
September
30, |
June
30, |
|
March
31, |
|
December
31, |
|
|
|
|
|
Balance Sheets (period end) |
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
56,397 |
|
|
$ |
56,228 |
|
|
$ |
49,422 |
|
|
$ |
59,609 |
|
|
$ |
51,404 |
|
|
|
|
|
|
Federal funds sold |
|
|
4,439 |
|
|
|
9,274 |
|
|
|
9,654 |
|
|
|
7,048 |
|
|
|
2,405 |
|
|
|
|
|
|
Cash and cash equivalents |
|
|
60,836 |
|
|
|
65,502 |
|
|
|
59,076 |
|
|
|
66,657 |
|
|
|
53,809 |
|
|
|
|
|
|
Investment securities available for sale, at fair value |
|
|
170,779 |
|
|
|
159,414 |
|
|
|
167,209 |
|
|
|
169,605 |
|
|
|
164,967 |
|
|
|
|
|
|
Other investments |
|
|
955 |
|
|
|
958 |
|
|
|
711 |
|
|
|
777 |
|
|
|
915 |
|
|
|
|
|
|
Loans held for sale |
|
|
- |
|
|
|
632 |
|
|
|
171 |
|
|
|
104 |
|
|
|
- |
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner occupied |
|
|
183,545 |
|
|
|
185,593 |
|
|
|
187,919 |
|
|
|
185,661 |
|
|
|
191,748 |
|
|
|
|
|
|
Non-owner occupied |
|
|
401,580 |
|
|
|
382,676 |
|
|
|
385,846 |
|
|
|
400,314 |
|
|
|
380,580 |
|
|
|
|
|
|
Multifamily |
|
|
82,506 |
|
|
|
82,578 |
|
|
|
58,579 |
|
|
|
63,892 |
|
|
|
58,251 |
|
|
|
|
|
|
Residential real estate |
|
|
328,854 |
|
|
|
321,331 |
|
|
|
312,196 |
|
|
|
306,179 |
|
|
|
296,308 |
|
|
|
|
|
|
Commercial and industrial |
|
|
221,508 |
|
|
|
214,334 |
|
|
|
209,349 |
|
|
|
195,024 |
|
|
|
195,602 |
|
|
|
|
|
|
Home equity lines of credit |
|
|
127,818 |
|
|
|
127,494 |
|
|
|
126,894 |
|
|
|
126,555 |
|
|
|
128,065 |
|
|
|
|
|
|
Construction and other |
|
|
125,105 |
|
|
|
127,106 |
|
|
|
118,851 |
|
|
|
97,406 |
|
|
|
94,199 |
|
|
|
|
|
|
Consumer installment |
|
|
7,214 |
|
|
|
7,481 |
|
|
|
9,801 |
|
|
|
7,816 |
|
|
|
8,119 |
|
|
|
|
|
|
Total loans |
|
|
1,478,130 |
|
|
|
1,448,593 |
|
|
|
1,409,435 |
|
|
|
1,382,847 |
|
|
|
1,352,872 |
|
|
|
|
|
|
Less allowance for credit losses |
|
|
21,693 |
|
|
|
20,986 |
|
|
|
20,591 |
|
|
|
20,162 |
|
|
|
14,438 |
|
|
|
|
|
|
Net loans |
|
|
1,456,437 |
|
|
|
1,427,607 |
|
|
|
1,388,844 |
|
|
|
1,362,685 |
|
|
|
1,338,434 |
|
|
|
|
|
|
Premises and equipment, net |
|
|
21,339 |
|
|
|
21,708 |
|
|
|
21,629 |
|
|
|
21,775 |
|
|
|
21,961 |
|
|
|
|
|
|
Goodwill |
|
|
36,356 |
|
|
|
36,197 |
|
|
|
36,197 |
|
|
|
31,735 |
|
|
|
31,735 |
|
|
|
|
|
|
Core deposit intangibles |
|
|
6,642 |
|
|
|
6,906 |
|
|
|
7,171 |
|
|
|
7,436 |
|
|
|
7,701 |
|
|
|
|
|
|
Bank-owned life insurance |
|
|
34,349 |
|
|
|
34,153 |
|
|
|
34,235 |
|
|
|
34,015 |
|
|
|
33,811 |
|
|
|
|
|
|
Other real estate owned |
|
|
- |
|
|
|
5,792 |
|
|
|
5,792 |
|
|
|
5,792 |
|
|
|
5,821 |
|
|
|
|
|
|
Accrued interest receivable and other assets |
|
|
35,190 |
|
|
|
34,551 |
|
|
|
30,472 |
|
|
|
27,258 |
|
|
|
28,528 |
|
|
|
|
|
|
TOTAL ASSETS |
|
$ |
1,822,883 |
|
|
$ |
1,793,420 |
|
|
$ |
1,751,507 |
|
|
$ |
1,727,839 |
|
|
$ |
1,687,682 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31, |
|
September
30, |
June
30, |
|
March
31, |
|
December
31, |
|
|
|
|
|
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
|
$ |
401,384 |
|
|
$ |
424,055 |
|
|
$ |
441,102 |
|
|
$ |
474,977 |
|
|
$ |
503,907 |
|
|
|
|
|
|
Interest-bearing demand |
|
|
205,582 |
|
|
|
243,973 |
|
|
|
229,633 |
|
|
|
196,086 |
|
|
|
164,677 |
|
|
|
|
|
|
Money market |
|
|
274,682 |
|
|
|
275,766 |
|
|
|
241,537 |
|
|
|
221,723 |
|
|
|
187,498 |
|
|
|
|
|
|
Savings |
|
|
210,639 |
|
|
|
216,453 |
|
|
|
231,508 |
|
|
|
287,859 |
|
|
|
307,917 |
|
|
|
|
|
|
Time |
|
|
334,315 |
|
|
|
296,732 |
|
|
|
287,861 |
|
|
|
244,962 |
|
|
|
238,020 |
|
|
|
|
|
|
Total deposits |
|
|
1,426,602 |
|
|
|
1,456,979 |
|
|
|
1,431,641 |
|
|
|
1,425,607 |
|
|
|
1,402,019 |
|
|
|
|
|
|
Federal Home Loan Bank advances |
|
|
163,000 |
|
|
|
118,000 |
|
|
|
100,000 |
|
|
|
85,000 |
|
|
|
65,000 |
|
|
|
|
|
|
Other borrowings |
|
|
11,862 |
|
|
|
11,912 |
|
|
|
11,961 |
|
|
|
12,010 |
|
|
|
12,059 |
|
|
|
|
|
|
Accrued interest payable and other liabilities |
|
|
15,738 |
|
|
|
12,780 |
|
|
|
10,678 |
|
|
|
10,057 |
|
|
|
10,913 |
|
|
|
|
|
|
TOTAL LIABILITIES |
|
|
1,617,202 |
|
|
|
1,599,671 |
|
|
|
1,554,280 |
|
|
|
1,532,674 |
|
|
|
1,489,991 |
|
|
|
|
|
|
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, no par value; 25,000,000 shares authorized,
9,930,704 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shares issued, 8,095,252 shares outstanding as of December 31,
2023 |
|
161,388 |
|
|
|
161,312 |
|
|
|
161,211 |
|
|
|
161,248 |
|
|
|
161,029 |
|
|
|
|
|
|
Retained earnings |
|
|
100,237 |
|
|
|
98,717 |
|
|
|
96,500 |
|
|
|
93,024 |
|
|
|
94,154 |
|
|
|
|
|
|
Accumulated other comprehensive loss |
|
|
(16,090 |
) |
|
|
(26,426 |
) |
|
|
(20,630 |
) |
|
|
(19,253 |
) |
|
|
(22,144 |
) |
|
|
|
|
|
Treasury stock, at cost; 1,835,452 shares as of December 31,
2023 |
|
|
(39,854 |
) |
|
|
(39,854 |
) |
|
|
(39,854 |
) |
|
|
(39,854 |
) |
|
|
(35,348 |
) |
|
|
|
|
|
TOTAL STOCKHOLDERS' EQUITY |
|
|
205,681 |
|
|
|
193,749 |
|
|
|
197,227 |
|
|
|
195,165 |
|
|
|
197,691 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
$ |
1,822,883 |
|
|
$ |
1,793,420 |
|
|
$ |
1,751,507 |
|
|
$ |
1,727,839 |
|
|
$ |
1,687,682 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MIDDLEFIELD BANC CORP. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Selected Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollar
amounts in thousands, unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Twelve Months Ended |
|
|
|
December
31, |
|
September
30, |
June
30, |
|
March
31, |
|
December
31, |
|
December
31, |
|
December
31, |
|
Statements of Income |
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST AND
DIVIDEND INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
|
$ |
22,027 |
|
|
$ |
20,899 |
|
|
$ |
20,762 |
|
|
$ |
18,275 |
|
|
$ |
14,368 |
|
|
$ |
81,963 |
|
|
$ |
48,513 |
|
|
Interest-earning deposits in other institutions |
|
|
370 |
|
|
|
300 |
|
|
|
369 |
|
|
|
250 |
|
|
|
240 |
|
|
|
1,289 |
|
|
|
472 |
|
|
Federal funds sold |
|
|
94 |
|
|
|
266 |
|
|
|
158 |
|
|
|
253 |
|
|
|
119 |
|
|
|
771 |
|
|
|
219 |
|
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable interest |
|
|
479 |
|
|
|
477 |
|
|
|
479 |
|
|
|
458 |
|
|
|
477 |
|
|
|
1,893 |
|
|
|
1,811 |
|
|
Tax-exempt interest |
|
|
976 |
|
|
|
980 |
|
|
|
978 |
|
|
|
980 |
|
|
|
986 |
|
|
|
3,914 |
|
|
|
3,707 |
|
|
Dividends on stock |
|
|
144 |
|
|
|
148 |
|
|
|
91 |
|
|
|
88 |
|
|
|
68 |
|
|
|
471 |
|
|
|
184 |
|
|
Total interest and dividend income |
|
|
24,090 |
|
|
|
23,070 |
|
|
|
22,837 |
|
|
|
20,304 |
|
|
|
16,258 |
|
|
|
90,301 |
|
|
|
54,906 |
|
|
INTEREST
EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
6,522 |
|
|
|
5,632 |
|
|
|
3,851 |
|
|
|
2,990 |
|
|
|
1,771 |
|
|
|
18,995 |
|
|
|
4,018 |
|
|
Short-term borrowings |
|
|
2,013 |
|
|
|
1,258 |
|
|
|
1,462 |
|
|
|
653 |
|
|
|
263 |
|
|
|
5,386 |
|
|
|
307 |
|
|
Other borrowings |
|
|
179 |
|
|
|
213 |
|
|
|
170 |
|
|
|
155 |
|
|
|
142 |
|
|
|
717 |
|
|
|
404 |
|
|
Total interest expense |
|
|
8,714 |
|
|
|
7,103 |
|
|
|
5,483 |
|
|
|
3,798 |
|
|
|
2,176 |
|
|
|
25,098 |
|
|
|
4,729 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME |
|
|
15,376 |
|
|
|
15,967 |
|
|
|
17,354 |
|
|
|
16,506 |
|
|
|
14,082 |
|
|
|
65,203 |
|
|
|
50,177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision
for credit losses |
|
|
554 |
|
|
|
1,127 |
|
|
|
814 |
|
|
|
507 |
|
|
|
- |
|
|
|
3,002 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME AFTER PROVISION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOR CREDIT
LOSSES |
|
|
14,822 |
|
|
|
14,840 |
|
|
|
16,540 |
|
|
|
15,999 |
|
|
|
14,082 |
|
|
|
62,201 |
|
|
|
50,177 |
|
|
NONINTEREST
INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
|
997 |
|
|
|
954 |
|
|
|
940 |
|
|
|
987 |
|
|
|
976 |
|
|
|
3,878 |
|
|
|
3,850 |
|
|
Loss on equity securities |
|
|
(4 |
) |
|
|
48 |
|
|
|
(67 |
) |
|
|
(138 |
) |
|
|
(77 |
) |
|
|
(161 |
) |
|
|
(173 |
) |
|
(Loss) gain on other real estate owned |
|
|
(172 |
) |
|
|
- |
|
|
|
- |
|
|
|
2 |
|
|
|
- |
|
|
|
(170 |
) |
|
|
- |
|
|
Earnings on bank-owned life insurance |
|
|
196 |
|
|
|
207 |
|
|
|
220 |
|
|
|
200 |
|
|
|
137 |
|
|
|
823 |
|
|
|
459 |
|
|
Gain (loss) on sale of loans |
|
|
23 |
|
|
|
45 |
|
|
|
6 |
|
|
|
23 |
|
|
|
(4 |
) |
|
|
97 |
|
|
|
24 |
|
|
Revenue from investment services |
|
|
193 |
|
|
|
190 |
|
|
|
174 |
|
|
|
186 |
|
|
|
147 |
|
|
|
743 |
|
|
|
674 |
|
|
Gross rental income |
|
|
132 |
|
|
|
110 |
|
|
|
77 |
|
|
|
102 |
|
|
|
951 |
|
|
|
421 |
|
|
|
951 |
|
|
Other income |
|
|
237 |
|
|
|
263 |
|
|
|
242 |
|
|
|
318 |
|
|
|
284 |
|
|
|
1,060 |
|
|
|
961 |
|
|
Total noninterest income |
|
|
1,602 |
|
|
|
1,817 |
|
|
|
1,592 |
|
|
|
1,680 |
|
|
|
2,414 |
|
|
|
6,691 |
|
|
|
6,746 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
6,646 |
|
|
|
5,994 |
|
|
|
6,019 |
|
|
|
5,852 |
|
|
|
4,886 |
|
|
|
24,511 |
|
|
|
17,548 |
|
|
Occupancy expense |
|
|
512 |
|
|
|
699 |
|
|
|
659 |
|
|
|
696 |
|
|
|
487 |
|
|
|
2,566 |
|
|
|
2,033 |
|
|
Equipment expense |
|
|
273 |
|
|
|
297 |
|
|
|
354 |
|
|
|
317 |
|
|
|
252 |
|
|
|
1,241 |
|
|
|
1,074 |
|
|
Data processing costs |
|
|
1,348 |
|
|
|
1,209 |
|
|
|
1,137 |
|
|
|
1,070 |
|
|
|
1,050 |
|
|
|
4,764 |
|
|
|
3,701 |
|
|
Ohio state franchise tax |
|
|
397 |
|
|
|
398 |
|
|
|
398 |
|
|
|
385 |
|
|
|
279 |
|
|
|
1,578 |
|
|
|
1,157 |
|
|
Federal deposit insurance expense |
|
|
285 |
|
|
|
207 |
|
|
|
249 |
|
|
|
120 |
|
|
|
105 |
|
|
|
861 |
|
|
|
329 |
|
|
Professional fees |
|
|
660 |
|
|
|
545 |
|
|
|
550 |
|
|
|
538 |
|
|
|
382 |
|
|
|
2,293 |
|
|
|
1,500 |
|
|
Other real estate owned writedowns |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,000 |
|
|
|
- |
|
|
|
1,200 |
|
|
Advertising expense |
|
|
162 |
|
|
|
414 |
|
|
|
415 |
|
|
|
486 |
|
|
|
308 |
|
|
|
1,477 |
|
|
|
1,033 |
|
|
Software amortization expense |
|
|
22 |
|
|
|
24 |
|
|
|
23 |
|
|
|
26 |
|
|
|
28 |
|
|
|
95 |
|
|
|
143 |
|
|
Core deposit intangible amortization |
|
|
264 |
|
|
|
265 |
|
|
|
265 |
|
|
|
265 |
|
|
|
140 |
|
|
|
1,059 |
|
|
|
372 |
|
|
Gross other real estate owned expenses |
|
|
120 |
|
|
|
195 |
|
|
|
63 |
|
|
|
132 |
|
|
|
692 |
|
|
|
510 |
|
|
|
707 |
|
|
Merger-related costs |
|
|
- |
|
|
|
22 |
|
|
|
206 |
|
|
|
245 |
|
|
|
1,413 |
|
|
|
473 |
|
|
|
2,382 |
|
|
Other expense |
|
|
1,483 |
|
|
|
1,849 |
|
|
|
1,716 |
|
|
|
1,661 |
|
|
|
1,321 |
|
|
|
6,709 |
|
|
|
4,851 |
|
|
Total noninterest expense |
|
|
12,172 |
|
|
|
12,118 |
|
|
|
12,054 |
|
|
|
11,793 |
|
|
|
12,343 |
|
|
|
48,137 |
|
|
|
38,030 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes |
|
|
4,252 |
|
|
|
4,539 |
|
|
|
6,078 |
|
|
|
5,886 |
|
|
|
4,153 |
|
|
|
20,755 |
|
|
|
18,893 |
|
|
Income
taxes |
|
|
709 |
|
|
|
703 |
|
|
|
986 |
|
|
|
989 |
|
|
|
651 |
|
|
|
3,387 |
|
|
|
3,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME |
|
$ |
3,543 |
|
|
$ |
3,836 |
|
|
$ |
5,092 |
|
|
$ |
4,897 |
|
|
$ |
3,502 |
|
|
$ |
17,368 |
|
|
$ |
15,673 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PTPP(1) |
|
$ |
4,806 |
|
|
$ |
5,666 |
|
|
$ |
6,892 |
|
|
$ |
6,393 |
|
|
$ |
4,153 |
|
|
$ |
23,757 |
|
|
$ |
18,893 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
For the Twelve Months Ended |
|
|
|
December
31, |
|
September
30, |
June
30, |
|
March
31, |
|
December
31, |
|
December
31, |
|
December
31, |
|
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Per common share data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per common share - basic |
|
$ |
0.44 |
|
|
$ |
0.47 |
|
|
$ |
0.63 |
|
|
$ |
0.60 |
|
|
$ |
0.53 |
|
|
$ |
2.14 |
|
|
$ |
2.60 |
|
|
Net income
per common share - diluted |
|
$ |
0.44 |
|
|
$ |
0.47 |
|
|
$ |
0.63 |
|
|
$ |
0.60 |
|
|
$ |
0.53 |
|
|
$ |
2.14 |
|
|
$ |
2.59 |
|
|
Dividends
declared per share |
|
$ |
0.25 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.30 |
|
|
$ |
0.85 |
|
|
$ |
0.81 |
|
|
Book value
per share (period end) |
|
$ |
25.41 |
|
|
$ |
23.94 |
|
|
$ |
24.38 |
|
|
$ |
24.13 |
|
|
$ |
23.98 |
|
|
$ |
25.41 |
|
|
$ |
23.98 |
|
|
Tangible
book value per share (period end)(1) (2) |
|
$ |
20.10 |
|
|
$ |
18.62 |
|
|
$ |
19.02 |
|
|
$ |
19.29 |
|
|
$ |
19.19 |
|
|
$ |
20.10 |
|
|
$ |
19.19 |
|
|
Dividends
declared |
|
$ |
2,023 |
|
|
$ |
1,619 |
|
|
$ |
1,616 |
|
|
$ |
1,605 |
|
|
$ |
2,514 |
|
|
$ |
6,864 |
|
|
$ |
5,490 |
|
|
Dividend
yield |
|
|
3.06 |
% |
|
|
3.12 |
% |
|
|
2.99 |
% |
|
|
2.89 |
% |
|
|
4.34 |
% |
|
|
2.63 |
% |
|
|
2.96 |
% |
|
Dividend
payout ratio |
|
|
57.10 |
% |
|
|
42.21 |
% |
|
|
31.74 |
% |
|
|
32.78 |
% |
|
|
71.79 |
% |
|
|
39.52 |
% |
|
|
37.23 |
% |
|
Average
shares outstanding - basic |
|
|
8,093,478 |
|
|
|
8,092,494 |
|
|
|
8,088,793 |
|
|
|
8,138,771 |
|
|
|
6,593,616 |
|
|
|
8,103,230 |
|
|
|
6,027,091 |
|
|
Average
shares outstanding - diluted |
|
|
8,116,609 |
|
|
|
8,101,306 |
|
|
|
8,101,984 |
|
|
|
8,152,629 |
|
|
|
6,610,907 |
|
|
|
8,126,361 |
|
|
|
6,044,382 |
|
|
Period
ending shares outstanding |
|
|
8,095,252 |
|
|
|
8,092,576 |
|
|
|
8,088,793 |
|
|
|
8,088,793 |
|
|
|
8,245,235 |
|
|
|
8,095,252 |
|
|
|
8,245,235 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average assets (Annualized) |
|
|
0.78 |
% |
|
|
0.86 |
% |
|
|
1.17 |
% |
|
|
1.16 |
% |
|
|
0.97 |
% |
|
|
0.99 |
% |
|
|
1.17 |
% |
|
Return on
average equity (Annualized) |
|
|
7.13 |
% |
|
|
7.73 |
% |
|
|
10.41 |
% |
|
|
10.19 |
% |
|
|
9.35 |
% |
|
|
8.83 |
% |
|
|
11.25 |
% |
|
Return on
average tangible common equity(1) (3) |
|
|
9.11 |
% |
|
|
9.91 |
% |
|
|
13.12 |
% |
|
|
12.77 |
% |
|
|
11.13 |
% |
|
|
11.20 |
% |
|
|
12.95 |
% |
|
Efficiency(4) |
|
|
68.99 |
% |
|
|
65.65 |
% |
|
|
61.27 |
% |
|
|
62.44 |
% |
|
|
72.75 |
% |
|
|
64.49 |
% |
|
|
64.96 |
% |
|
Equity to
assets at period end |
|
|
11.28 |
% |
|
|
10.80 |
% |
|
|
11.26 |
% |
|
|
11.30 |
% |
|
|
11.71 |
% |
|
|
11.28 |
% |
|
|
11.71 |
% |
|
Noninterest
expense to average assets |
|
|
0.68 |
% |
|
|
0.68 |
% |
|
|
0.69 |
% |
|
|
0.69 |
% |
|
|
0.86 |
% |
|
|
2.74 |
% |
|
|
2.84 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
For the Twelve Months Ended |
|
|
|
December
31, |
|
September
30, |
June
30, |
|
March
31, |
|
December
31, |
|
December
31, |
|
December
31, |
|
Yields |
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable(1) |
|
|
6.01 |
% |
|
|
5.82 |
% |
|
|
5.96 |
% |
|
|
5.45 |
% |
|
|
5.11 |
% |
|
|
5.82 |
% |
|
|
4.79 |
% |
|
Investment securities(1) |
|
|
4.26 |
% |
|
|
4.09 |
% |
|
|
4.08 |
% |
|
|
4.11 |
% |
|
|
3.83 |
% |
|
|
4.13 |
% |
|
|
3.73 |
% |
|
Interest-earning deposits with other banks |
|
|
3.71 |
% |
|
|
4.13 |
% |
|
|
3.98 |
% |
|
|
3.46 |
% |
|
|
3.42 |
% |
|
|
3.82 |
% |
|
|
1.31 |
% |
|
Total
interest-earning assets |
|
|
5.76 |
% |
|
|
5.58 |
% |
|
|
5.69 |
% |
|
|
5.22 |
% |
|
|
4.88 |
% |
|
|
5.57 |
% |
|
|
4.45 |
% |
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
|
|
1.67 |
% |
|
|
1.51 |
% |
|
|
1.11 |
% |
|
|
0.83 |
% |
|
|
0.83 |
% |
|
|
1.32 |
% |
|
|
0.34 |
% |
|
Money market deposits |
|
|
3.58 |
% |
|
|
2.94 |
% |
|
|
2.21 |
% |
|
|
1.52 |
% |
|
|
1.00 |
% |
|
|
2.65 |
% |
|
|
0.61 |
% |
|
Savings deposits |
|
|
0.59 |
% |
|
|
0.58 |
% |
|
|
0.73 |
% |
|
|
1.03 |
% |
|
|
0.49 |
% |
|
|
0.76 |
% |
|
|
0.20 |
% |
|
Certificates of deposit |
|
|
3.68 |
% |
|
|
3.27 |
% |
|
|
2.35 |
% |
|
|
1.71 |
% |
|
|
1.30 |
% |
|
|
2.83 |
% |
|
|
1.00 |
% |
|
Total
interest-bearing deposits |
|
|
2.56 |
% |
|
|
2.16 |
% |
|
|
1.60 |
% |
|
|
1.28 |
% |
|
|
0.87 |
% |
|
|
1.92 |
% |
|
|
0.51 |
% |
|
Non-Deposit Funding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings |
|
|
5.57 |
% |
|
|
5.66 |
% |
|
|
5.26 |
% |
|
|
4.78 |
% |
|
|
4.25 |
% |
|
|
5.40 |
% |
|
|
3.35 |
% |
|
Total
interest-bearing liabilities |
|
|
2.96 |
% |
|
|
2.48 |
% |
|
|
2.02 |
% |
|
|
1.52 |
% |
|
|
1.02 |
% |
|
|
2.28 |
% |
|
|
0.59 |
% |
|
Cost of
deposits |
|
|
1.81 |
% |
|
|
1.53 |
% |
|
|
1.09 |
% |
|
|
0.84 |
% |
|
|
0.57 |
% |
|
|
1.32 |
% |
|
|
0.34 |
% |
|
Cost of
funds |
|
|
2.18 |
% |
|
|
1.80 |
% |
|
|
1.43 |
% |
|
|
1.02 |
% |
|
|
0.68 |
% |
|
|
1.62 |
% |
|
|
0.40 |
% |
|
Net interest
margin(2) |
|
|
3.70 |
% |
|
|
3.88 |
% |
|
|
4.34 |
% |
|
|
4.26 |
% |
|
|
4.23 |
% |
|
|
4.04 |
% |
|
|
4.08 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Tax-equivalent
adjustments to calculate the yield on tax-exempt securities and
loans were determined using an effective tax rate of 21%. |
|
|
|
|
|
|
|
(2)Net interest margin represents net interest income as a
percentage of average interest-earning assets. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
|
|
|
|
|
December
31, |
|
September
30, |
June
30, |
|
March
31, |
|
December
31, |
|
|
|
|
|
Asset quality data |
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
(Dollar
amounts in thousands, unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans(1) |
|
$ |
10,877 |
|
|
$ |
7,717 |
|
|
$ |
7,116 |
|
|
$ |
6,882 |
|
|
$ |
2,111 |
|
|
|
|
|
|
Other real
estate owned |
|
|
- |
|
|
|
5,792 |
|
|
|
5,792 |
|
|
|
5,792 |
|
|
|
5,821 |
|
|
|
|
|
|
Nonperforming assets |
|
$ |
10,877 |
|
|
$ |
13,509 |
|
|
$ |
12,908 |
|
|
$ |
12,674 |
|
|
$ |
7,932 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for credit losses |
|
$ |
21,693 |
|
|
$ |
20,986 |
|
|
$ |
20,591 |
|
|
$ |
20,162 |
|
|
$ |
14,438 |
|
|
|
|
|
|
Allowance
for credit losses/total loans |
|
|
1.47 |
% |
|
|
1.45 |
% |
|
|
1.46 |
% |
|
|
1.46 |
% |
|
|
1.07 |
% |
|
|
|
|
|
Net
charge-offs (recoveries): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter-to-date |
|
$ |
(117 |
) |
|
$ |
(16 |
) |
|
$ |
111 |
|
|
$ |
(8 |
) |
|
$ |
94 |
|
|
|
|
|
|
Year-to-date |
|
|
(31 |
) |
|
|
87 |
|
|
|
103 |
|
|
|
(8 |
) |
|
|
(96 |
) |
|
|
|
|
|
Net
charge-offs (recoveries) to average loans, annualized: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter-to-date |
|
|
(0.03 |
%) |
|
|
0.00 |
% |
|
|
0.03 |
% |
|
|
0.00 |
% |
|
|
0.03 |
% |
|
|
|
|
|
Year-to-date |
|
|
0.00 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.00 |
% |
|
|
(0.01 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans/total loans |
|
|
0.74 |
% |
|
|
0.53 |
% |
|
|
0.50 |
% |
|
|
0.50 |
% |
|
|
0.16 |
% |
|
|
|
|
|
Allowance
for credit losses/nonperforming loans |
|
|
199.44 |
% |
|
|
271.95 |
% |
|
|
289.36 |
% |
|
|
292.97 |
% |
|
|
683.94 |
% |
|
|
|
|
|
Nonperforming assets/total assets |
|
|
0.60 |
% |
|
|
0.75 |
% |
|
|
0.74 |
% |
|
|
0.73 |
% |
|
|
0.47 |
% |
|
|
|
|
|
(1)On January 1, 2023,
the Company adopted ASU 2022-02, Financial Instruments – Credit
Losses (Topic 326): Troubled Debt Restructurings and Vintage
Disclosures. As a result, nonperforming loans for the periods after
January 1, 2023, include certain loans which were modified to
borrowers experiencing financial difficulty. Amounts prior to
January 1, 2023, exclude nonperforming troubled debt restructurings
that were performing in according with their terms over a
prescribed period of time, for which accounting guidance was
eliminated upon adoption of ASU 2022-02. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
|
December
31, |
|
September
30, |
June
30, |
|
March
31, |
|
December
31, |
|
|
|
|
|
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
$ |
205,681 |
|
|
$ |
193,749 |
|
|
$ |
197,227 |
|
|
$ |
195,165 |
|
|
$ |
197,691 |
|
|
|
|
|
|
Less
goodwill and other intangibles |
|
|
42,998 |
|
|
|
43,103 |
|
|
|
43,368 |
|
|
|
39,171 |
|
|
|
39,436 |
|
|
|
|
|
|
Tangible
common equity |
|
$ |
162,683 |
|
|
$ |
150,646 |
|
|
$ |
153,859 |
|
|
$ |
155,994 |
|
|
$ |
158,255 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares
outstanding |
|
|
8,095,252 |
|
|
|
8,092,576 |
|
|
|
8,088,793 |
|
|
|
8,088,793 |
|
|
|
8,245,235 |
|
|
|
|
|
|
Tangible
book value per share |
|
$ |
20.10 |
|
|
$ |
18.62 |
|
|
$ |
19.02 |
|
|
$ |
19.29 |
|
|
$ |
19.19 |
|
|
|
|
|
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Average Equity to Return on Average
Tangible Common Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Twelve Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31, |
|
September
30, |
June
30, |
|
March
31, |
|
December
31, |
|
December
31, |
|
December
31, |
|
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
stockholders' equity |
|
$ |
197,208 |
|
|
$ |
196,795 |
|
|
$ |
196,183 |
|
|
$ |
194,814 |
|
|
$ |
148,616 |
|
|
$ |
196,602 |
|
|
$ |
139,270 |
|
|
Less average
goodwill and other intangibles |
|
|
42,972 |
|
|
|
43,232 |
|
|
|
40,522 |
|
|
|
39,300 |
|
|
|
23,731 |
|
|
|
41,507 |
|
|
|
18,200 |
|
|
Average
tangible common equity |
|
$ |
154,236 |
|
|
$ |
153,563 |
|
|
$ |
155,661 |
|
|
$ |
155,514 |
|
|
$ |
124,885 |
|
|
$ |
155,095 |
|
|
$ |
121,070 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
|
$ |
3,543 |
|
|
$ |
3,836 |
|
|
$ |
5,092 |
|
|
$ |
4,897 |
|
|
$ |
3,502 |
|
|
$ |
17,368 |
|
|
$ |
15,673 |
|
|
Return on
average tangible common equity (annualized) |
|
|
9.11 |
% |
|
|
9.91 |
% |
|
|
13.12 |
% |
|
|
12.77 |
% |
|
|
11.13 |
% |
|
|
11.20 |
% |
|
|
12.95 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Pre-Tax Pre-Provision Income
(PTPP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Twelve Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31, |
|
September
30, |
|
June
30, |
|
March
31, |
|
December
31, |
|
December
31, |
|
December
31, |
|
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
|
$ |
3,543 |
|
|
$ |
3,836 |
|
|
$ |
5,092 |
|
|
$ |
4,897 |
|
|
$ |
3,502 |
|
|
$ |
17,368 |
|
|
$ |
15,673 |
|
|
Add income
taxes |
|
|
709 |
|
|
|
703 |
|
|
|
986 |
|
|
|
989 |
|
|
|
651 |
|
|
|
3,387 |
|
|
|
3,220 |
|
|
Add
provision for credit losses |
|
|
554 |
|
|
|
1,127 |
|
|
|
814 |
|
|
|
507 |
|
|
|
- |
|
|
|
3,002 |
|
|
|
- |
|
|
PTPP |
|
$ |
4,806 |
|
|
$ |
5,666 |
|
|
$ |
6,892 |
|
|
$ |
6,393 |
|
|
$ |
4,153 |
|
|
$ |
23,757 |
|
|
$ |
18,893 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MIDDLEFIELD BANC CORP. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance Sheets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollar
amounts in thousands, unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
|
|
|
December 31, |
|
December 31, |
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
Average |
|
|
|
Average |
|
Average |
|
|
|
Average |
|
|
|
|
|
Balance |
|
Interest |
|
Yield/Cost |
|
Balance |
|
Interest |
|
Yield/Cost |
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable ⁽¹⁾ |
|
$ |
1,454,688 |
|
|
$ |
22,027 |
|
|
|
6.01 |
% |
|
$ |
1,117,221 |
|
|
$ |
14,368 |
|
|
|
5.11 |
% |
|
|
|
Investment securities ⁽¹⁾ |
|
|
159,493 |
|
|
|
1,455 |
|
|
|
4.26 |
% |
|
|
178,772 |
|
|
|
1,463 |
|
|
|
3.83 |
% |
|
|
|
Interest-earning deposits with other banks ⁽²⁾ |
|
|
64,989 |
|
|
|
608 |
|
|
|
3.71 |
% |
|
|
49,569 |
|
|
|
427 |
|
|
|
3.42 |
% |
|
|
|
Total
interest-earning assets |
|
|
1,679,170 |
|
|
|
24,090 |
|
|
|
5.76 |
% |
|
|
1,345,562 |
|
|
|
16,258 |
|
|
|
4.88 |
% |
|
|
|
Noninterest-earning assets |
|
|
116,160 |
|
|
|
|
|
|
|
89,740 |
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
1,795,330 |
|
|
|
|
|
|
$ |
1,435,302 |
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
|
$ |
222,517 |
|
|
$ |
935 |
|
|
|
1.67 |
% |
|
$ |
165,267 |
|
|
$ |
344 |
|
|
|
0.83 |
% |
|
|
|
Money market deposits |
|
|
276,354 |
|
|
|
2,493 |
|
|
|
3.58 |
% |
|
|
172,437 |
|
|
|
435 |
|
|
|
1.00 |
% |
|
|
|
Savings deposits |
|
|
211,997 |
|
|
|
317 |
|
|
|
0.59 |
% |
|
|
266,613 |
|
|
|
330 |
|
|
|
0.49 |
% |
|
|
|
Certificates of deposit |
|
|
299,427 |
|
|
|
2,777 |
|
|
|
3.68 |
% |
|
|
201,972 |
|
|
|
662 |
|
|
|
1.30 |
% |
|
|
|
Short-term borrowings |
|
|
144,344 |
|
|
|
2,013 |
|
|
|
5.53 |
% |
|
|
25,750 |
|
|
|
263 |
|
|
|
4.05 |
% |
|
|
|
Other borrowings |
|
|
11,890 |
|
|
|
179 |
|
|
|
5.97 |
% |
|
|
12,086 |
|
|
|
142 |
|
|
|
4.66 |
% |
|
|
|
Total
interest-bearing liabilities |
|
|
1,166,529 |
|
|
|
8,714 |
|
|
|
2.96 |
% |
|
|
844,125 |
|
|
|
2,176 |
|
|
|
1.02 |
% |
|
|
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits |
|
|
422,151 |
|
|
|
|
|
|
|
428,155 |
|
|
|
|
|
|
|
|
Other liabilities |
|
|
9,442 |
|
|
|
|
|
|
|
14,406 |
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
197,208 |
|
|
|
|
|
|
|
148,616 |
|
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity |
|
$ |
1,795,330 |
|
|
|
|
|
|
$ |
1,435,302 |
|
|
|
|
|
|
|
|
Net interest
income |
|
|
|
$ |
15,376 |
|
|
|
|
|
|
$ |
14,082 |
|
|
|
|
|
|
Interest
rate spread ⁽³⁾ |
|
|
|
|
|
|
2.80 |
% |
|
|
|
|
|
|
3.86 |
% |
|
|
|
Net interest
margin ⁽⁴⁾ |
|
|
|
|
|
|
3.70 |
% |
|
|
|
|
|
|
4.23 |
% |
|
|
|
Ratio of average interest-earning assets to average
interest-bearing liabilities |
|
|
|
|
|
|
143.95 |
% |
|
|
|
|
|
|
159.40 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Tax-equivalent
adjustments to calculate the yield on tax-exempt securities and
loans were $282 and $278 for the three months ended December 31,
2023 and 2022, respectively. |
|
|
|
(2)Includes
dividends received on restricted stock. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)Interest rate
spread represents the difference between the average yield on
interest-earning assets and the average cost of interest-bearing
liabilities. |
|
|
|
|
|
|
(4)Net interest margin represents net interest income as a
percentage of average interest-earning assets. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
|
|
|
December 31, |
|
September 30, |
|
|
|
|
|
|
2023 |
|
|
|
2023 |
|
|
|
|
|
|
Average |
|
|
|
Average |
|
Average |
|
|
|
Average |
|
|
|
|
|
Balance |
|
Interest |
|
Yield/Cost |
|
Balance |
|
Interest |
|
Yield/Cost |
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable ⁽¹⁾ |
|
$ |
1,454,688 |
|
|
$ |
22,027 |
|
|
|
6.01 |
% |
|
$ |
1,425,375 |
|
|
$ |
20,899 |
|
|
|
5.82 |
% |
|
|
|
Investment securities ⁽¹⁾ |
|
|
159,493 |
|
|
|
1,455 |
|
|
|
4.26 |
% |
|
|
166,671 |
|
|
|
1,457 |
|
|
|
4.09 |
% |
|
|
|
Interest-earning deposits with other banks ⁽²⁾ |
|
|
64,989 |
|
|
|
608 |
|
|
|
3.71 |
% |
|
|
68,587 |
|
|
|
714 |
|
|
|
4.13 |
% |
|
|
|
Total
interest-earning assets |
|
|
1,679,170 |
|
|
|
24,090 |
|
|
|
5.76 |
% |
|
|
1,660,633 |
|
|
|
23,070 |
|
|
|
5.58 |
% |
|
|
|
Noninterest-earning assets |
|
|
116,160 |
|
|
|
|
|
|
|
115,353 |
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
1,795,330 |
|
|
|
|
|
|
$ |
1,775,986 |
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
|
$ |
222,517 |
|
|
$ |
935 |
|
|
|
1.67 |
% |
|
$ |
256,153 |
|
|
$ |
975 |
|
|
|
1.51 |
% |
|
|
|
Money market deposits |
|
|
276,354 |
|
|
|
2,493 |
|
|
|
3.58 |
% |
|
|
259,802 |
|
|
|
1,928 |
|
|
|
2.94 |
% |
|
|
|
Savings deposits |
|
|
211,997 |
|
|
|
317 |
|
|
|
0.59 |
% |
|
|
225,216 |
|
|
|
327 |
|
|
|
0.58 |
% |
|
|
|
Certificates of deposit |
|
|
299,427 |
|
|
|
2,777 |
|
|
|
3.68 |
% |
|
|
291,409 |
|
|
|
2,402 |
|
|
|
3.27 |
% |
|
|
|
Short-term borrowings |
|
|
144,344 |
|
|
|
2,013 |
|
|
|
5.53 |
% |
|
|
91,201 |
|
|
|
1,258 |
|
|
|
5.47 |
% |
|
|
|
Other borrowings |
|
|
11,890 |
|
|
|
179 |
|
|
|
5.97 |
% |
|
|
11,940 |
|
|
|
213 |
|
|
|
7.08 |
% |
|
|
|
Total
interest-bearing liabilities |
|
|
1,166,529 |
|
|
|
8,714 |
|
|
|
2.96 |
% |
|
|
1,135,721 |
|
|
|
7,103 |
|
|
|
2.48 |
% |
|
|
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits |
|
|
422,151 |
|
|
|
|
|
|
|
431,775 |
|
|
|
|
|
|
|
|
Other liabilities |
|
|
9,442 |
|
|
|
|
|
|
|
11,695 |
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
197,208 |
|
|
|
|
|
|
|
196,795 |
|
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity |
|
$ |
1,795,330 |
|
|
|
|
|
|
$ |
1,775,986 |
|
|
|
|
|
|
|
|
Net interest
income |
|
|
|
$ |
15,376 |
|
|
|
|
|
|
$ |
15,967 |
|
|
|
|
|
|
Interest
rate spread ⁽³⁾ |
|
|
|
|
|
|
2.80 |
% |
|
|
|
|
|
|
3.10 |
% |
|
|
|
Net interest
margin ⁽⁴⁾ |
|
|
|
|
|
|
3.70 |
% |
|
|
|
|
|
|
3.88 |
% |
|
|
|
Ratio of average interest-earning assets to average
interest-bearing liabilities |
|
|
|
|
|
|
143.95 |
% |
|
|
|
|
|
|
146.22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Tax-equivalent
adjustments to calculate the yield on tax-exempt securities and
loans were $282 and $270 for the three months ended December 31,
2023 and September 30, 2023, respectively. |
|
(2)Includes
dividends received on restricted stock. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)Interest rate
spread represents the difference between the average yield on
interest-earning assets and the average cost of interest-bearing
liabilities. |
|
|
|
|
|
|
(4)Net interest margin represents net interest income as a
percentage of average interest-earning assets. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Twelve Months Ended |
|
|
|
|
|
December 31, |
|
December 31, |
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
Average |
|
|
|
Average |
|
Average |
|
|
|
Average |
|
|
|
|
|
Balance |
|
Interest |
|
Yield/Cost |
|
Balance |
|
Interest |
|
Yield/Cost |
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable ⁽¹⁾ |
|
$ |
1,410,251 |
|
|
$ |
81,963 |
|
|
|
5.82 |
% |
|
$ |
1,014,896 |
|
|
$ |
48,513 |
|
|
|
4.79 |
% |
|
|
|
Investment securities ⁽¹⁾ |
|
|
165,910 |
|
|
|
5,807 |
|
|
|
4.13 |
% |
|
|
174,514 |
|
|
|
5,518 |
|
|
|
3.73 |
% |
|
|
|
Interest-earning deposits with other banks ⁽²⁾ |
|
|
66,295 |
|
|
|
2,531 |
|
|
|
3.82 |
% |
|
|
67,030 |
|
|
|
875 |
|
|
|
1.31 |
% |
|
|
|
Total
interest-earning assets |
|
|
1,642,456 |
|
|
|
90,301 |
|
|
|
5.57 |
% |
|
|
1,256,440 |
|
|
|
54,906 |
|
|
|
4.45 |
% |
|
|
|
Noninterest-earning assets |
|
|
116,459 |
|
|
|
|
|
|
|
84,484 |
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
1,758,915 |
|
|
|
|
|
|
$ |
1,340,924 |
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
|
$ |
217,662 |
|
|
$ |
2,870 |
|
|
|
1.32 |
% |
|
$ |
164,569 |
|
|
$ |
554 |
|
|
|
0.34 |
% |
|
|
|
Money market deposits |
|
|
244,765 |
|
|
|
6,498 |
|
|
|
2.65 |
% |
|
|
174,377 |
|
|
|
1,055 |
|
|
|
0.61 |
% |
|
|
|
Savings deposits |
|
|
253,962 |
|
|
|
1,925 |
|
|
|
0.76 |
% |
|
|
259,225 |
|
|
|
527 |
|
|
|
0.20 |
% |
|
|
|
Certificates of deposit |
|
|
272,443 |
|
|
|
7,702 |
|
|
|
2.83 |
% |
|
|
188,617 |
|
|
|
1,882 |
|
|
|
1.00 |
% |
|
|
|
Short-term borrowings |
|
|
101,088 |
|
|
|
5,386 |
|
|
|
5.33 |
% |
|
|
8,576 |
|
|
|
307 |
|
|
|
3.58 |
% |
|
|
|
Other borrowings |
|
|
11,965 |
|
|
|
717 |
|
|
|
5.99 |
% |
|
|
12,626 |
|
|
|
404 |
|
|
|
3.20 |
% |
|
|
|
Total
interest-bearing liabilities |
|
|
1,101,885 |
|
|
|
25,098 |
|
|
|
2.28 |
% |
|
|
807,990 |
|
|
|
4,729 |
|
|
|
0.59 |
% |
|
|
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits |
|
|
449,102 |
|
|
|
|
|
|
|
386,296 |
|
|
|
|
|
|
|
|
Other liabilities |
|
|
11,326 |
|
|
|
|
|
|
|
7,368 |
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
196,602 |
|
|
|
|
|
|
|
139,270 |
|
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity |
|
$ |
1,758,915 |
|
|
|
|
|
|
$ |
1,340,924 |
|
|
|
|
|
|
|
|
Net interest
income |
|
|
|
$ |
65,203 |
|
|
|
|
|
|
$ |
50,177 |
|
|
|
|
|
|
Interest
rate spread ⁽³⁾ |
|
|
|
|
|
|
3.29 |
% |
|
|
|
|
|
|
3.86 |
% |
|
|
|
Net interest
margin ⁽⁴⁾ |
|
|
|
|
|
|
4.04 |
% |
|
|
|
|
|
|
4.08 |
% |
|
|
|
Ratio of
average interest-earning assets to average interest-bearing
liabilities |
|
|
|
|
|
|
149.06 |
% |
|
|
|
|
|
|
155.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Tax-equivalent
adjustments to calculate the yield on tax-exempt securities and
loans were $1,106 and $1,046 for the twelve months ended December
31, 2023 and 2022, respectively. |
|
|
|
(2)Includes
dividends received on restricted stock. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)Interest rate
spread represents the difference between the average yield on
interest-earning assets and the average cost of interest-bearing
liabilities. |
|
|
|
|
|
|
(4)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 OfficerMiddlefield Banc Corp.(419)
673-1217rzimmerly@middlefieldbank.com |
Andrew M. BergerManaging
DirectorSM Berger & Company, Inc. (216)
464-6400andrew@smberger.com |
Middlefield Banc (NASDAQ:MBCN)
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