Middlefield Banc Corp. Reports 2024 First Quarter Financial Results

Published

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 StatementNet 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 SheetTotal 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 CREPortfolio Percent of LoanPortfolio
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 DividendsAt 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 QualityFor 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 MEASURESThis 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 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 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 OfficerMiddlefield Banc Corp.(419) 673-1217rzimmerly@middlefieldbank.comAndrew M. BergerManaging DirectorSM Berger & Company, Inc. (216) 464-6400andrew@smberger.com

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Source: Middlefield Banc Corp.

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