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Middlefield Banc Corp. Reports 2022 First Half Financial Results

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Middlefield Banc Corp.
Middlefield Banc Corp.

MIDDLEFIELD, Ohio, July 18, 2022 (GLOBE NEWSWIRE) -- Middlefield Banc Corp. (NASDAQ: MBCN) reported financial results for the 2022 first half and second quarter ended June 30, 2022.

2022 First Half Financial Highlights Include (on a year-over-year basis unless noted):

  • Returned $4.4 million of capital to shareholders through dividends and the repurchase of 95,364 shares at an average price of $25.39 per share

  • Net income was $7.9 million, or $1.35 per diluted share, compared to $8.6 million, or $1.35 per diluted share

  • First-half pre-tax income benefited from $1.2 million of accelerated net fees associated with the Paycheck Protection Program (“PPP”), compared to $1.9 million in the 2021 first half

  • Net income during the second quarter was negatively impacted by $579,000 of one-time expenses associated with the proposed Liberty Bancshares, Inc. merger

  • Net interest margin improved by 20 basis points to 3.91%, compared to 3.71%

  • Total loans were $978.0 million, compared to $981.7 million at December 31, 2021

  • Total loans increased by $27.8 million, or 6.1% annualized from December 31, 2021, without the impact of PPP loan forgiveness

  • Return on average assets was 1.21%, compared to 1.26%

  • Return on average equity was 11.49%, compared to 11.88%

  • Return on average tangible common equity(1) was 13.03%, compared to 13.41%

  • Strong asset quality with nonperforming loans to total loans of 0.48%, compared to 0.73%

  • Allowance for loan losses was 1.49% of total loans, compared to 1.34%

  • Merger with Liberty Bancshares, Inc. on schedule to close during the 2022 fourth quarter

“We are focused on profitably growing our business, supporting our communities, and creating value for our shareholders, and I am pleased with the progress we made during the second quarter,” stated James R. Heslop, II, President and Chief Executive Officer. “Profitability has remained strong despite lower year-over-year fees associated with the Paycheck Protection Program and $579,000 of one-time expenses associated with the proposed Liberty Bancshares, Inc. merger. Reflecting our profitable financial model, second-quarter net interest margin increased 30 basis points to 4.02%. I am also encouraged by the growth we experienced in our return on tangible common equity, demonstrating the additional benefits of our share repurchase program.”

Mr. Heslop continued, “We are working on growing our balance sheet while controlling risk in a very fluid business environment. During the second quarter, core loans increased at an annualized rate of 6.9% since the beginning of the year. We continue to work on completing the merger with Liberty Bancshares, Inc., which we expect to close during the 2022 fourth quarter. Once complete, we expect to benefit as a larger bank with total assets of approximately $1.80 billion, strong earnings accretion, and a robust footprint in two of Ohio’s largest and fastest-growing markets. We believe the merger will generate meaningful earnings per share accretion while having a minimal tangible book value dilution and manageable earn-back period.”

Mr. Heslop concluded, “Over the past several years, we have invested throughout our organization, expanded our digital banking capabilities, and assembled a strong team of motivated and experienced leaders. We expect 2022 to be another good year for Middlefield Banc Corp., and I am excited by the direction we are headed,” concluded Mr. Heslop.

Income Statement

Net interest income for the 2022 first half decreased 0.9% to $23.5 million, compared to $23.7 million for the same period last year. Year-to-date, the net interest margin was 3.91%, compared to 3.71% for the same period last year. Net interest income for the 2022 second quarter was $12.0 million, compared to $11.9 million for the 2021 second quarter. The 1.5% increase in net interest income for the 2022 second quarter was largely a result of a 26.9% reduction in total interest expense. The net interest margin for the 2022 second quarter was 4.02%, compared to 3.72% for the same period of 2021.

For the 2022 first half, noninterest income was $2.8 million, compared to $3.9 million for the same period last year. Noninterest income for the 2022 second quarter was $1.4 million, compared to $1.6 million for the same period last year.

For the 2022 first half, noninterest expense increased 3.6% to $16.8 million, compared to $16.2 million for the same period last year. Operating costs in the 2022 second quarter increased 8.1% to $8.5 million from $7.9 million for the 2021 second quarter. The Company incurred $579,000 of additional operating expenses during the 2022 second quarter associated with the proposed Liberty Bancshares, Inc. merger.

Net income for the 2022 first half ended June 30, 2022, was $7.9 million, or $1.35 per diluted share, compared to $8.6 million, or $1.35 per diluted share for the same period last year. Net income for the 2022 second quarter ended June 30, 2022, was $4.1 million, or $0.70 per diluted share, compared to $4.4 million, or $0.70 per diluted share for the same period last year.

Balance Sheet

Total assets at June 30, 2022, decreased 4.9% to $1.29 billion, compared to $1.36 billion at June 30, 2021. Net loans at June 30, 2022, decreased 7.5% to $963.4 million, compared to $1.04 billion at June 30, 2021. Since 2020, Middlefield has helped customers receive $211.1 million of forgiveness payments under the terms of the Paycheck Protection Program, including processing $16.3 million of forgiveness payments during the second quarter of 2022, and $32.7 million of forgiveness payments year-to-date. The balance of PPP loans outstanding at June 30, 2022, was $1.4 million.

Total deposits at June 30, 2022, were $1.15 billion, compared to $1.20 billion at June 30, 2021. The 4.0% decrease in deposits was primarily due to a decline in time-based and interest-bearing accounts, partially offset by increased noninterest-bearing accounts. The investment portfolio was $172.0 million at June 30, 2022, compared with $150.9 million at June 30, 2021.

Donald L. Stacy, Chief Financial Officer, stated, “We remain well-positioned to benefit from a rising interest rate environment. In addition, as economic uncertainty has increased, we are entering this period from a position of strength with a historically strong balance sheet and excellent asset quality. These trends allow us to navigate a changing economic cycle while simultaneously allocating capital to support our long-term growth strategies, dividend payment, and share repurchase program.”

Mr. Stacy continued, “We continue to allocate excess capital to our dividend and share repurchase programs. Year-to-date, we have repurchased 95,364 shares of our common stock at a total cost of $2.4 million. This includes 63,214 shares repurchased during the 2022 second quarter at an average price of $25.35 per share at June 30, 2022. With 292,187 shares remaining under our repurchase program, we will continue to focus on returning capital to shareholders through our share repurchase program.”

Stockholders’ Equity and Dividends
At June 30, 2022, stockholders’ equity was $128.2 million compared to $146.0 million at June 30, 2021. The 12.2% year-over-year decline in stockholders’ equity was primarily due to an increase in the unrealized loss on the available-for-sale investment portfolio during the three-month period and the Company’s stock repurchase program. On a per-share basis, shareholders’ equity at June 30, 2022, was $22.07 compared to $23.50 at June 30, 2021.

At June 30, 2022, tangible stockholders’ equity(1) was $111.9 million, compared to $129.4 million at June 30, 2021. On a per-share basis, tangible stockholders’ equity(1) was $19.26 at June 30, 2022, compared to $20.82 at June 30, 2021.

Through the 2022 first half, the Company declared cash dividends of $0.34 per share, compared to $0.32 per share for the same period last year.

At June 30, 2022, the Company had an equity-to-assets ratio of 9.91%, compared to 10.74% at June 30, 2021.

Asset Quality

There was no provision for loan losses for the 2022 second quarter versus a $200,000 provision for loan losses for the same period last year. The year-over-year decline in the provision for loan losses was partially due to strong asset quality and the previous year’s prudent build in the Company’s allowance for loan losses associated with the potential economic impacts caused by the COVID-19 pandemic. There was no provision for loan losses for the 2022 first half versus $900,000 for the same period last year.

Net recoveries were $58,000, or 0.02% of average loans, annualized, during the 2022 second quarter, compared to net charge-offs of $122,000, or 0.05% of average loans, annualized, at June 30, 2021. Year-to-date net recoveries were $208,000, or 0.04% of average loans, annualized, compared to net charge-offs of $159,000, or 0.03% of average loans, annualized for the six-months ended June 30, 2021.

Nonperforming loans at June 30, 2022, were $4.7 million, compared to $7.8 million at June 30, 2021. Nonperforming assets at June 30, 2022, were $11.5 million, compared to $14.9 million at June 30, 2021. The allowance for loan losses at June 30, 2022, stood at $14.6 million, or 1.49% of total loans, compared to $14.2 million, or 1.34% of total loans at June 30, 2021.

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 $1.29 billion at June 30, 2022. The Bank operates 16 full-service banking centers and an LPL Financial® brokerage office serving Beachwood, Chardon, Cortland, Dublin, Garrettsville, Mantua, 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

(1) 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 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 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) the effect of the COVID-19 pandemic, including on our credit quality and business operations, as well as its impact on general economic and financial market conditions; (8) changes in the securities markets; (9) the Company’s failure to integrate Liberty Bancshares, Inc. and Liberty National Bank with Middlefield in accordance with expectations and deviations from performance expectations related to Liberty Bancshares, Inc. and Liberty National Bank; or (10) 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.

IMPORTANT ADDITIONAL INFORMATION

In connection with the proposed merger with Liberty Bancshares, Inc., (“Liberty”), the Company intends to file with the SEC a registration statement on Form S-4 to register the shares of the Company’s common stock that will be issued to Liberty shareholders in connection with the merger. The registration statement will include a joint proxy statement/prospectus and other relevant materials in connection with the proposed merger, which will be sent to the shareholders of Liberty and the Company seeking their approval of the proposed merger.
SHAREHOLDERS OF LIBERTY, COMPANY SHAREHOLDERS, AND OTHER INVESTORS ARE URGED TO CAREFULLY READ THE PROXY STATEMENT AND PROSPECTUS TO BE INCLUDED IN THE REGISTRATION STATEMENT ON FORM S-4, BECAUSE THE PROXY STATEMENT/PROSPECTUSES WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY, LIBERTY, THE PROPOSED MERGER, THE PERSONS SOLICITING PROXIES WITH RESPECT TO THE PROPOSED MERGER, AND THEIR INTERESTS IN THE PROPOSED MERGER AND RELATED MATTERS.

Investors and security holders will be able to obtain free copies of the Registration Statement on Form S-4 (when available) and other documents filed by the Company with the SEC through the website maintained by the SEC at www.sec.gov. Copies of the documents filed with the SEC by the Company will be available free of charge on the Company’s website at www.middlefieldbank.bank or may be obtained from the Company by written request to Middlefield Banc Corp., 15985 East High Street P. O. Box 35 Middlefield, Ohio 44062, Attention: Investor Relations.

This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor shall there be any sale of securities in any jurisdiction in which the offer, solicitation or sale is unlawful before registration or qualification of the securities under the securities laws of the jurisdiction. No offer of securities shall be made except by means of a prospectus satisfying the requirements of Section 10 of the Securities Act.

The respective directors and executive officers of the Company and Liberty and other persons may be deemed to be participants in the solicitation of proxies from Liberty shareholders with respect to the proposed merger. Information regarding the directors of the Company is available in its proxy statement filed with the SEC on April 5, 2022 in connection with its 2022 Annual Meeting of Shareholders and information regarding the executive officers of the Company is available in its Form 10-K filed with the SEC on March 15, 2022. Information regarding the directors and executive officers of Liberty, which is a private company, and other information regarding the participants in the solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus to be included in the Form S-4 Registration Statement and other relevant materials to be filed with the SEC when they become available.


MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(Dollar amounts in thousands, unaudited)


 

 

June 30, 

 

 

 

March 31, 

 

 

 

December 31, 

 

 

 

September 30,

 

 

 

June 30,

 

Balance Sheets (period end)

 

2022

 

 

 

2022

 

 

 

2021

 

 

 

2021

 

 

 

2021

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

60,114

 

 

$

78,804

 

 

$

97,172

 

 

$

113,177

 

 

$

82,435

 

Federal funds sold

 

19,039

 

 

 

29,474

 

 

 

22,322

 

 

 

19,174

 

 

 

10,034

 

Cash and cash equivalents

 

79,153

 

 

 

108,278

 

 

 

119,494

 

 

 

132,351

 

 

 

92,469

 

Equity securities, at fair value

 

779

 

 

 

851

 

 

 

818

 

 

 

833

 

 

 

730

 

Investment securities available for sale, at fair value

 

171,958

 

 

 

175,216

 

 

 

170,199

 

 

 

163,057

 

 

 

150,850

 

Loans held for sale

 

-

 

 

 

9

 

 

 

1,051

 

 

 

676

 

 

 

790

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner occupied

 

120,771

 

 

 

113,590

 

 

 

111,470

 

 

 

110,883

 

 

 

109,777

 

Non-owner occupied

 

288,334

 

 

 

293,745

 

 

 

283,618

 

 

 

310,222

 

 

 

304,324

 

Multifamily

 

29,152

 

 

 

29,385

 

 

 

31,189

 

 

 

30,762

 

 

 

34,926

 

Residential real estate

 

246,453

 

 

 

244,747

 

 

 

240,089

 

 

 

232,020

 

 

 

228,102

 

Commercial and industrial

 

137,398

 

 

 

131,683

 

 

 

148,812

 

 

 

163,052

 

 

 

200,558

 

Home equity lines of credit

 

111,730

 

 

 

106,300

 

 

 

104,355

 

 

 

105,450

 

 

 

107,685

 

Construction and other

 

35,988

 

 

 

50,152

 

 

 

54,148

 

 

 

49,378

 

 

 

62,229

 

Consumer installment

 

8,171

 

 

 

8,118

 

 

 

8,010

 

 

 

8,515

 

 

 

8,694

 

Total loans

 

977,997

 

 

 

977,720

 

 

 

981,691

 

 

 

1,010,282

 

 

 

1,056,295

 

Less allowance for loan and lease losses

 

14,550

 

 

 

14,492

 

 

 

14,342

 

 

 

14,234

 

 

 

14,200

 

Net loans

 

963,447

 

 

 

963,228

 

 

 

967,349

 

 

 

996,048

 

 

 

1,042,095

 

Premises and equipment, net

 

17,030

 

 

 

17,142

 

 

 

17,272

 

 

 

17,507

 

 

 

17,680

 

Goodwill

 

15,071

 

 

 

15,071

 

 

 

15,071

 

 

 

15,071

 

 

 

15,071

 

Core deposit intangibles

 

1,249

 

 

 

1,326

 

 

 

1,403

 

 

 

1,484

 

 

 

1,564

 

Bank-owned life insurance

 

17,274

 

 

 

17,166

 

 

 

17,060

 

 

 

16,954

 

 

 

16,846

 

Other real estate owned

 

6,792

 

 

 

6,992

 

 

 

6,992

 

 

 

7,090

 

 

 

7,090

 

Accrued interest receivable and other assets

 

20,624

 

 

 

18,019

 

 

 

14,297

 

 

 

14,794

 

 

 

15,033

 

TOTAL ASSETS

$

1,293,377

 

 

$

1,323,298

 

 

$

1,331,006

 

 

$

1,365,865

 

 

$

1,360,218

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

 

 

March 31,

 

 

 

December 31,

 

 

 

September 30,

 

 

 

June 30,

 

 

 

2022

 

 

 

2022

 

 

 

2021

 

 

 

2021

 

 

 

2021

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

$

379,872

 

 

$

361,251

 

 

$

334,171

 

 

$

316,770

 

 

$

326,665

 

Interest-bearing demand

 

154,788

 

 

 

162,010

 

 

 

196,308

 

 

 

237,576

 

 

 

207,725

 

Money market

 

185,494

 

 

 

187,807

 

 

 

177,281

 

 

 

178,423

 

 

 

183,453

 

Savings

 

252,179

 

 

 

264,784

 

 

 

260,125

 

 

 

256,114

 

 

 

252,171

 

Time

 

174,833

 

 

 

191,320

 

 

 

198,725

 

 

 

211,674

 

 

 

225,271

 

Total deposits

 

1,147,166

 

 

 

1,167,172

 

 

 

1,166,610

 

 

 

1,200,557

 

 

 

1,195,285

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other borrowings

 

12,910

 

 

 

12,975

 

 

 

12,901

 

 

 

12,966

 

 

 

13,031

 

Accrued interest payable and other liabilities

 

5,081

 

 

 

5,507

 

 

 

6,160

 

 

 

6,287

 

 

 

5,858

 

TOTAL LIABILITIES

 

1,165,157

 

 

 

1,185,654

 

 

 

1,185,671

 

 

 

1,219,810

 

 

 

1,214,174

 

STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock, no par value; 10,000,000 shares authorized, 7,347,526

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

shares issued, 5,810,351 shares outstanding as of June 30, 2022

 

87,562

 

 

 

87,562

 

 

 

87,131

 

 

 

87,131

 

 

 

87,131

 

Retained earnings

 

89,900

 

 

 

86,804

 

 

 

83,971

 

 

 

80,376

 

 

 

76,150

 

Accumulated other comprehensive (loss) income

 

(17,591

)

 

 

(6,674

)

 

 

3,462

 

 

 

3,610

 

 

 

3,893

 

Treasury stock, at cost;  1,537,175 shares as of June 30, 2022

 

(31,651

)

 

 

(30,048

)

 

 

(29,229

)

 

 

(25,062

)

 

 

(21,130

)

TOTAL STOCKHOLDERS' EQUITY

 

128,220

 

 

 

137,644

 

 

 

145,335

 

 

 

146,055

 

 

 

146,044

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

1,293,377

 

 

$

1,323,298

 

 

$

1,331,006

 

 

$

1,365,865

 

 

$

1,360,218

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(Dollar amounts in thousands, unaudited)

 

 

For the Three Months Ended

 

 


For the Six Months Ended

 

 

June 30,

 

 

 

March 31,

 

 

December 31,

 

 

 

September 30,

 

 

June 30,

 

 

June 30,

 

 

 

June 30,

Statements of Income

 

2022

 

 

 

2022

 

 

2021

 

 

 

2021

 

 

2021

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST AND DIVIDEND INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

$

11,268

 

 

$

10,985

 

$

11,586

 

 

$

12,258

 

$

11,885

 

$

22,253

 

 

$

24,052

Interest-earning deposits in other institutions

 

74

 

 

 

24

 

 

30

 

 

 

30

 

 

12

 

 

98

 

 

 

30

Federal funds sold

 

46

 

 

 

3

 

 

1

 

 

 

1

 

 

1

 

 

49

 

 

 

1

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable interest

 

442

 

 

 

443

 

 

438

 

 

 

461

 

 

410

 

 

885

 

 

 

780

Tax-exempt interest

 

955

 

 

 

784

 

 

732

 

 

 

673

 

 

602

 

 

1,739

 

 

 

1,160

Dividends on stock

 

33

 

 

 

24

 

 

23

 

 

 

24

 

 

26

 

 

57

 

 

 

55

Total interest and dividend income

 

12,818

 

 

 

12,263

 

 

12,810

 

 

 

13,447

 

 

12,936

 

 

25,081

 

 

 

26,078

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Deposits

 

709

 

 

 

726

 

 

783

 

 

 

915

 

 

1,010

 

 

1,435

 

 

 

2,215

 Other borrowings

 

81

 

 

 

69

 

 

67

 

 

 

69

 

 

71

 

 

150

 

 

 

146

    Total interest expense

 

790

 

 

 

795

 

 

850

 

 

 

984

 

 

1,081

 

 

1,585

 

 

 

2,361

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INTEREST INCOME

 

12,028

 

 

 

11,468

 

 

11,960

 

 

 

12,463

 

 

11,855

 

 

23,496

 

 

 

23,717

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

-

 

 

 

-

 

 

(200

)

 

 

-

 

 

200

 

 

-

 

 

 

900

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INTEREST INCOME AFTER PROVISION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 FOR LOAN LOSSES

 

12,028

 

 

 

11,468

 

 

12,160

 

 

 

12,463

 

 

11,655

 

 

23,496

 

 

 

22,817

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Service charges on deposit accounts

 

956

 

 

 

914

 

 

906

 

 

 

876

 

 

856

 

 

1,870

 

 

 

1,643

 (Loss) gain on equity securities

 

(72

)

 

 

33

 

 

(14

)

 

 

102

 

 

40

 

 

(39

)

 

 

121

 Earnings on bank-owned life insurance

 

108

 

 

 

106

 

 

106

 

 

 

108

 

 

106

 

 

214

 

 

 

332

 Gains on sale of loans

 

18

 

 

 

3

 

 

118

 

 

 

309

 

 

221

 

 

21

 

 

 

813

 Revenue from investment services

 

153

 

 

 

141

 

 

198

 

 

 

192

 

 

210

 

 

294

 

 

 

339

 Other income

 

220

 

 

 

206

 

 

221

 

 

 

234

 

 

199

 

 

426

 

 

 

602

    Total noninterest income

 

1,383

 

 

 

1,403

 

 

1,535

 

 

 

1,821

 

 

1,632

 

 

2,786

 

 

 

3,850

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

3,785

 

 

 

4,386

 

 

4,088

 

 

 

4,488

 

 

4,321

 

 

8,171

 

 

 

8,575

Occupancy expense

 

583

 

 

 

505

 

 

542

 

 

 

425

 

 

517

 

 

1,088

 

 

 

1,081

Equipment expense

 

274

 

 

 

315

 

 

358

 

 

 

333

 

 

313

 

 

589

 

 

 

670

Data processing and information technology
    costs

 

822

 

 

 

682

 

 

660

 

 

 

736

 

 

698

 

 

1,665

 

 

 

1,484

Ohio state franchise tax

 

292

 

 

 

293

 

 

285

 

 

 

287

 

 

286

 

 

585

 

 

 

572

Federal deposit insurance expense

 

90

 

 

 

50

 

 

50

 

 

 

150

 

 

150

 

 

140

 

 

 

294

Professional fees

 

383

 

 

 

455

 

 

435

 

 

 

136

 

 

323

 

 

838

 

 

 

742

Net loss (gain) on other real estate owned

 

206

 

 

 

8

 

 

(66)

 

 

 

9

 

 

22

 

 

214

 

 

 

68

Advertising expense

 

229

 

 

 

228

 

 

221

 

 

 

222

 

 

221

 

 

457

 

 

 

442

Software amortization expense

 

40

 

 

 

48

 

 

119

 

 

 

88

 

 

74

 

 

88

 

 

 

154

Core deposit intangible amortization

 

77

 

 

 

77

 

 

80

 

 

 

81

 

 

80

 

 

154

 

 

 

160

Merger-related costs

 

579

 

 

 

-

 

 

-

 

 

 

-

 

 

-

 

 

579

 

 

 

-

Other expense

 

1,175

 

 

 

1,219

 

 

1,059

 

 

 

951

 

 

889

 

 

2,233

 

 

 

1,969

Total noninterest expense

 

8,535

 

 

 

8,266

 

 

7,831

 

 

 

7,906

 

 

7,894

 

 

16,801

 

 

 

16,211

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

4,876

 

 

 

4,605

 

 

5,864

 

 

 

6,378

 

 

5,393

 

 

9,481

 

 

 

10,456

Income taxes

 

787

 

 

 

772

 

 

1,027

 

 

 

1,174

 

 

968

 

 

1,559

 

 

 

1,864

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

$

4,089

 

 

$

3,833

 

$

4,837

 

 

$

5,204

 

$

4,425

 

$

7,922

 

 

$

8,592

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PTPP (1)

$

4,876

 

 

$

4,605

 

$

5,664

 

 

$

6,378

 

$

5,593

 

$

9,481

 

 

$

11,356

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)  The pre-tax pre-provision (PTPP) is the income before income taxes before provision for loan losses considerations, for reconciliation of 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 Six Months Ended

 

 

June 30, 

 

 

March 31, 

 

 

December 31, 

 

 

September 30,

 

 

June 30,

 

 

June 30, 

 

 

June 30,

 

 

 

2022

 

 

2022

 

 

2021

 

 

2021

 

 

2021

 

 

2022

 

 

2021

 

Per common share data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - basic

$

0.70

 

$

0.65

 

$

0.81

 

$

0.85

 

$

0.70

 

$

1.35

 

$

1.36

 

Net income per common share - diluted

$

0.70

 

$

0.65

 

$

0.81

 

$

0.85

 

$

0.70

 

$

1.35

 

$

1.35

 

Dividends declared per share

$

0.17

 

$

0.17

 

$

0.21

 

$

0.16

 

$

0.16

 

$

0.34

 

$

0.32

 

Book value per share (period end)

$

22.07

 

$

23.43

 

$

24.68

 

$

24.13

 

$

23.50

 

$

22.07

 

$

23.50

 

Tangible book value per share (period end) (2) (3)

$

19.26

 

$

20.64

 

$

21.88

 

$

21.39

 

$

20.82

 

$

19.26

 

$

20.82

 

Dividends declared

$

993

 

$

1,000

 

$

1,242

 

$

978

 

$

1,004

 

$

1,993

 

$

1,920

 

Dividend yield

 

2.71

%

 

2.78

%

 

3.37

%

 

2.66

%

 

2.72

%

 

2.72

%

 

2.73

%

Dividend payout ratio

 

24.28

%

 

26.09

%

 

25.68

%

 

18.79

%

 

22.69

%

 

25.16

%

 

22.35

%

Average shares outstanding - basic

 

5,851,422

 

 

5,879,025

 

 

5,951,838

 

 

6,136,648

 

 

6,297,071

 

 

5,865,147

 

 

6,331,356

 

Average shares outstanding - diluted

 

5,860,098

 

 

5,889,836

 

 

5,975,333

 

 

6,157,181

 

 

6,312,230

 

 

5,873,823

 

 

6,348,345

 

Period ending shares outstanding

 

5,810,351

 

 

5,873,565

 

 

5,888,737

 

 

6,054,083

 

 

6,215,511

 

 

5,810,351

 

 

6,215,511

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

1.25

%

 

1.17

%

 

1.41

%

 

1.51

%

 

1.30

%

 

1.21

%

 

1.26

%

Return on average equity

 

12.30

%

 

10.75

%

 

13.17

%

 

13.95

%

 

12.10

%

 

11.49

%

 

11.88

%

Return on average tangible common equity (2) (4)

 

14.02

%

 

12.13

%

 

14.85

%

 

15.71

%

 

13.65

%

 

13.03

%

 

13.41

%

Efficiency (1)

 

61.82

%

 

62.54

%

 

56.56

%

 

54.04

%

 

57.18

%

 

62.17

%

 

57.50

%

Equity to assets at period end

 

9.91

%

 

10.40

%

 

10.92

%

 

10.69

%

 

10.74

%

 

9.91

%

 

10.74

%

Noninterest expense to average assets

 

0.65

%

 

0.62

%

 

0.58

%

 

0.58

%

 

0.58

%

 

1.27

%

 

1.18

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)  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

(2)  See reconciliation of non-GAAP measures below

(3)  Calculated by dividing tangible common equity by shares outstanding

(4)  Calculated by dividing annualized net income for each period by average tangible common equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(unaudited)

 

 

For the Three Months Ended

 

For the Six Months Ended

 

 

June 30, 

 

 

March 31, 

 

 

December 31, 

 

 

September 30,

 

 

June 30,

 

 

June 30, 

 

 

 

June 30,

 

Yields

 

2022

 

 

2022

 

 

2021

 

 

2021

 

 

2021

 

 

2022

 

 

 

2021

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable (2)

 

4.66

%

 

4.53

%

 

4.61

%

 

4.74

%

 

4.43

%

 

4.60

%

 

 

4.45

%

Investment securities (2)

 

3.76

%

 

3.41

%

 

3.30

%

 

3.37

%

 

3.47

%

 

3.59

%

 

 

3.60

%

Interest-earning deposits with other banks

 

0.77

%

 

0.23

%

 

0.20

%

 

0.21

%

 

0.18

%

 

0.48

%

 

 

0.19

%

Total interest-earning assets

 

4.28

%

 

4.06

%

 

4.07

%

 

4.20

%

 

4.05

%

 

4.17

%

 

 

4.08

%

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

0.15

%

 

0.14

%

 

0.12

%

 

0.12

%

 

0.12

%

 

0.15

%

 

 

0.14

%

Money market deposits

 

0.49

%

 

0.47

%

 

0.47

%

 

0.46

%

 

0.46

%

 

0.48

%

 

 

0.47

%

Savings deposits

 

0.06

%

 

0.06

%

 

0.06

%

 

0.06

%

 

0.06

%

 

0.06

%

 

 

0.07

%

Certificates of deposit

 

0.83

%

 

0.87

%

 

0.90

%

 

1.08

%

 

1.19

%

 

0.85

%

 

 

1.24

%

Total interest-bearing deposits

 

0.36

%

 

0.37

%

 

0.36

%

 

0.41

%

 

0.46

%

 

0.36

%

 

 

0.50

%

Non-Deposit Funding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings

 

2.51

%

 

2.16

%

 

2.09

%

 

2.11

%

 

2.18

%

 

2.34

%

 

 

2.16

%

Total interest-bearing liabilities

 

0.39

%

 

0.39

%

 

0.37

%

 

0.42

%

 

0.47

%

 

0.39

%

 

 

0.50

%

Cost of deposits

 

0.24

%

 

0.25

%

 

0.26

%

 

0.30

%

 

0.34

%

 

0.25

%

 

 

0.37

%

Cost of funds

 

0.27

%

 

0.27

%

 

0.27

%

 

0.31

%

 

0.35

%

 

0.27

%

 

 

0.38

%

Net interest margin (1)

 

4.02

%

 

3.80

%

 

3.82

%

 

3.91

%

 

3.72

%

 

3.91

%

 

 

3.71

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Net interest margin represents net interest income as a percentage of average interest-earning assets.

(2) Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were determined using an effective tax rate of 21%.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

For the Three Months Ended

 

 

June 30,

 

 

 

March 31,

 

 

 

December 31,

 

 

 

September 30,

 

 

 

June 30,

 

Asset quality data

 

2022

 

 

 

2022

 

 

 

2021

 

 

 

2021

 

 

 

2021

 

(Dollar amounts in thousands, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans (1)

$

4,670

 

 

$

4,728

 

 

$

4,859

 

 

$

6,806

 

 

$

7,760

 

Other real estate owned

 

6,792

 

 

 

6,992

 

 

 

6,992

 

 

 

7,090

 

 

 

7,090

 

Nonperforming assets

$

11,462

 

 

$

11,720

 

 

$

11,851

 

 

$

13,896

 

 

$

14,850

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses

$

14,550

 

 

$

14,492

 

 

$

14,342

 

 

$

14,234

 

 

$

14,200

 

Allowance for loan losses/total loans

 

1.49

%

 

 

1.48

%

 

 

1.46

%

 

 

1.41

%

 

 

1.34

%

Net (recoveries) charge-offs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter-to-date

$

(58

)

 

$

(150

)

 

$

(308

)

 

$

(34

)

 

$

122

 

Year-to-date

 

(208

)

 

 

(150

)

 

 

(183

)

 

 

125

 

 

 

159

 

Net charge-offs to average loans, annualized:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter-to-date

 

-0.02

%

 

 

-0.06

%

 

 

-0.12

%

 

 

-0.01

%

 

 

0.05

%

Year-to-date

 

-0.04

%

 

 

-0.06

%

 

 

-0.02

%

 

 

0.02

%

 

 

0.03

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans/total loans

 

0.48

%

 

 

0.48

%

 

 

0.49

%

 

 

0.67

%

 

 

0.73

%

Allowance for loan losses/nonperforming loans

 

311.56

%

 

 

306.51

%

 

 

295.16

%

 

 

209.14

%

 

 

182.99

%

Nonperforming assets/total assets

 

0.89

%

 

 

0.89

%

 

 

0.89

%

 

 

1.02

%

 

 

1.09

%

 

(1) Nonperforming loans exclude troubled debt restructurings that are performing in accordance with their terms over a prescribed period of time.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Common Stockholders' Equity to Tangible Common Equity

 

For the Three Months Ended

(Dollar amounts in thousands, unaudited)

 

June 30,

 

 

 

March 31,

 

 

 

December 31,

 

 

 

September 30,

 

 

 

June 30,

 

 

 

2022

 

 

 

2022

 

 

 

2021

 

 

 

2021

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' Equity

$

128,220

 

 

$

137,644

 

 

$

145,335

 

 

$

146,055

 

 

$

146,044

 

Less Goodwill and other intangibles

 

16,320

 

 

 

16,397

 

 

 

16,474

 

 

 

16,555

 

 

 

16,635

 

Tangible Common Equity

$

111,900

 

 

$

121,247

 

 

$

128,861

 

 

$

129,500

 

 

$

129,409

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding

 

5,810,351

 

 

 

5,873,565

 

 

 

5,888,737

 

 

 

6,054,083

 

 

 

6,215,511

 

Tangible book value per share

$

19.26

 

 

$

20.64

 

 

$

21.88

 

 

$

21.39

 

 

$

20.82

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Reconciliation of Average Equity to Return on Average Tangible Common Equity

 

For the Three Months Ended

 

For the Six Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

 

 

2022

 

 

2022

 

 

2021

 

 

2021

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Stockholders' Equity

$

133,377

 

$

144,630

 

$

145,716

 

$

148,048

 

$

146,719

 

$

139,003

 

$

145,892

 

Less Average Goodwill and other intangibles

 

16,357

 

 

16,435

 

 

16,513

 

 

16,594

 

 

16,674

 

 

16,396

 

 

16,714

 

Average Tangible Common Equity

$

117,020

 

$

128,195

 

$

129,203

 

$

131,454

 

$

130,045

 

$

122,607

 

$

129,178

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

4,089

 

$

3,833

 

$

4,837

 

$

5,204

 

$

4,425

 

$

7,922

 

$

8,592

 

Return on average tangible common equity (annualized)

 

14.02

%

 

12.13

%

 

14.85

%

 

15.71

%

 

13.65

%

 

13.03

%

 

13.41

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Pre-Tax Pre-Provision Income (PTPP)

 

For the Three Months Ended

 

For the Six Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 

 

 

March 31, 

 

 

December 31, 

 

 

September 30,

 

 

June 30,

 

 

June 30, 

 

 

June 30,

 

 

 

2022

 

 

2022

 

 

2021

 

 

2021

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

4,089

 

$

3,833

 

$

4,837

 

$

5,204

 

$

4,425

 

$

7,922

 

$

8,592

 

Add Income Taxes

 

787

 

 

772

 

 

1,027

 

 

1,174

 

 

968

 

 

1,559

 

 

1,864

 

Add Provision for loan losses

 

-

 

 

-

 

 

(200

)

 

-

 

 

200

 

 

-

 

 

900

 

PTPP

$

4,876

 

$

4,605

 

$

5,664

 

$

6,378

 

$

5,593

 

$

9,481

 

$

11,356

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


MIDDLEFIELD BANC CORP.
Average Balance Sheets
(Dollar amounts in thousands, unaudited)

 

 

For the Three Months Ended

 

 

June 30,

 

 

June 30,

 

 

2022

 

 

2021

 

 

Average

 

 

 

 

 

Average

 

 

 

Average

 

 

 

 

 

Average

 

 

 

Balance

 

 

Interest

 

 

Yield/Cost

 

 

 

Balance

 

 

Interest

 

 

Yield/Cost

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable (3)

 

$

970,820

 

 

$

11,268

 

 

4.66

%

 

 

$

1,078,866

 

 

$

11,885

 

 

4.43

%

Investment securities (3)

 

176,138

 

 

1,397

 

 

3.76

%

 

 

135,338

 

 

1,012

 

 

3.47

%

Interest-earning deposits with other banks (4)

 

79,924

 

 

153

 

 

0.77

%

 

 

85,245

 

 

39

 

 

0.18

%

Total interest-earning assets

 

1,226,882

 

 

12,818

 

 

4.28

%

 

 

1,299,449

 

 

12,936

 

 

4.05

%

Noninterest-earning assets

 

89,555

 

 

 

 

 

 

 

 

 

70,692

 

 

 

 

 

 

 

Total assets

 

$

1,316,437

 

 

 

 

 

 

 

 

 

$

1,370,141

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$

159,779

 

 

$

59

 

 

0.15

%

 

 

$

207,080

 

 

$

64

 

 

0.12

%

Money market deposits

 

185,711

 

 

228

 

 

0.49

%

 

 

185,728

 

 

212

 

 

0.46

%

Savings deposits

 

260,226

 

 

40

 

 

0.06

%

 

 

253,612

 

 

38

 

 

0.06

%

Certificates of deposit

 

184,748

 

 

382

 

 

0.83

%

 

 

233,930

 

 

696

 

 

1.19

%

Short-term borrowings

 

-

 

 

-

 

 

0.00

%

 

 

227

 

 

-

 

 

0.00

%

Other borrowings

 

12,945

 

 

81

 

 

2.51

%

 

 

13,062

 

 

71

 

 

2.18

%

Total interest-bearing liabilities

 

803,409

 

 

790

 

 

0.39

%

 

 

893,639

 

 

1,081

 

 

0.49

%

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

375,013

 

 

 

 

 

 

 

 

 

323,590

 

 

 

 

 

 

 

Other liabilities

 

4,638

 

 

 

 

 

 

 

 

 

6,193

 

 

 

 

 

 

 

Stockholders' equity

 

133,377

 

 

 

 

 

 

 

 

 

146,719

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

1,316,437

 

 

 

 

 

 

 

 

 

$

1,370,141

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

12,028

 

 

 

 

 

 

 

 

 

$

11,855

 

 

 

 

Interest rate spread (1)

 

 

 

 

 

 

 

3.89

%

 

 

 

 

 

 

 

 

3.56

%

Net interest margin (2)

 

 

 

 

 

 

 

4.02

%

 

 

 

 

 

 

 

 

3.72

%

Ratio of average interest-earning assets to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

average interest-bearing liabilities

 

 

 

 

 

 

 

152.71

%

 

 

 

 

 

 

 

 

145.41

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.

(2) Net interest margin represents net interest income as a percentage of average interest-earning assets.

(3) Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $271 and $179 for the three months ended June 30, 2022 and 2021, respectively

(4) Includes dividends received on restricted stock.


 

 

For the Three Months Ended

 

 

June 30, 

 

 

 

March 31, 

 

 

 

2022

 

 

 

2022

 

 

 

Average

 

 

 

 

 

Average

 

 

 

Average

 

 

 

 

 

Average

 

 

 

Balance

 

 

Interest

 

 

Yield/Cost

 

 

 

Balance

 

 

Interest

 

 

Yield/Cost

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable (3)

 

$

970,820

 

 

$

11,268

 

 

4.66

%

 

 

$

983,853

 

 

$

10,985

 

 

4.53

%

Investment securities (3)

 

176,138

 

 

1,397

 

 

3.76

%

 

 

170,829

 

 

1,227

 

 

3.41

%

Interest-earning deposits with other banks (4)

 

79,924

 

 

153

 

 

0.77

%

 

 

91,690

 

 

51

 

 

0.23

%

Total interest-earning assets

 

1,226,882

 

 

12,818

 

 

4.28

%

 

 

1,246,372

 

 

12,263

 

 

4.06

%

Noninterest-earning assets

 

89,555

 

 

 

 

 

 

 

 

 

85,667

 

 

 

 

 

 

 

Total assets

 

$

1,316,437

 

 

 

 

 

 

 

 

 

$

1,332,039

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$

159,779

 

 

$

59

 

 

0.15

%

 

 

$

170,353

 

 

$

60

 

 

0.14

%

Money market deposits

 

185,711

 

 

228

 

 

0.49

%

 

 

184,265

 

 

212

 

 

0.47

%

Savings deposits

 

260,226

 

 

40

 

 

0.06

%

 

 

260,162

 

 

38

 

 

0.06

%

Certificates of deposit

 

184,748

 

 

382

 

 

0.83

%

 

 

193,657

 

 

416

 

 

0.87

%

Short-term borrowings

 

-

 

 

-

 

 

0.00

%

 

 

-

 

 

-

 

 

0.00

%

Other borrowings

 

12,945

 

 

81

 

 

2.51

%

 

 

12,943

 

 

69

 

 

2.16

%

Total interest-bearing liabilities

 

803,409

 

 

790

 

 

0.39

%

 

 

821,380

 

 

795

 

 

0.39

%

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

375,013

 

 

 

 

 

 

 

 

 

359,656

 

 

 

 

 

 

 

Other liabilities

 

4,638

 

 

 

 

 

 

 

 

 

6,373

 

 

 

 

 

 

 

Stockholders' equity

 

133,377

 

 

 

 

 

 

 

 

 

144,630

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

1,316,437

 

 

 

 

 

 

 

 

 

$

1,332,039

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

12,028

 

 

 

 

 

 

 

 

 

$

11,468

 

 

 

 

Interest rate spread (1)

 

 

 

 

 

 

 

3.89

%

 

 

 

 

 

 

 

 

3.67

%

Net interest margin (2)

 

 

 

 

 

 

 

4.02

%

 

 

 

 

 

 

 

 

3.80

%

Ratio of average interest-earning assets to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

average interest-bearing liabilities

 

 

 

 

 

 

 

152.71

%

 

 

 

 

 

 

 

 

151.74

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.

(2) Net interest margin represents net interest income as a percentage of average interest-earning assets.

(3) Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $271 and $223 for the three months ended June 30, 2022, and March 31, 2022, respectively.

(4) Includes dividends received on restricted stock.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

For the Six Months Ended

 

 

 

 

June 30, 

 

 

 

June 30, 

 

 

 

2022

 

 

 

2021

 

 

 

Average

 

 

 

 

 

Average

 

 

 

Average

 

 

 

 

 

Average

 

 

 

Balance

 

 

Interest

 

 

Yield/Cost

 

 

 

Balance

 

 

Interest

 

 

Yield/Cost

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable (3)

 

$

977,336

 

 

$

22,253

 

 

4.60

%

 

 

$

1,091,119

 

 

$

24,052

 

 

4.45

%

Investment securities (3)

 

173,483

 

 

2,624

 

 

3.59

%

 

 

125,924

 

 

1,940

 

 

3.60

%

Interest-earning deposits with other banks (4)

 

85,807

 

 

204

 

 

0.48

%

 

 

89,477

 

 

86

 

 

0.19

%

Total interest-earning assets

 

1,236,626

 

 

25,081

 

 

4.17

%

 

 

1,306,520

 

 

26,078

 

 

4.08

%

Noninterest-earning assets

 

87,382

 

 

 

 

 

 

 

 

 

70,850

 

 

 

 

 

 

 

Total assets

 

$

1,324,008

 

 

 

 

 

 

 

 

 

$

1,377,370

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$

165,066

 

 

$

119

 

 

0.15

%

 

 

$

205,063

 

 

$

141

 

 

0.14

%

Money market deposits

 

184,988

 

 

440

 

 

0.48

%

 

 

190,502

 

 

441

 

 

0.47

%

Savings deposits

 

260,194

 

 

78

 

 

0.06

%

 

 

254,882

 

 

85

 

 

0.07

%

Certificates of deposit

 

189,203

 

 

798

 

 

0.85

%

 

 

251,711

 

 

1,548

 

 

1.24

%

Short-term borrowings

 

-

 

 

-

 

 

0.00

%

 

 

169

 

 

-

 

 

0.00

%

Other borrowings

 

12,944

 

 

150

 

 

2.34

%

 

 

13,660

 

 

146

 

 

2.16

%

Total interest-bearing liabilities

 

812,395

 

 

1,585

 

 

0.39

%

 

 

915,987

 

 

2,361

 

 

0.52

%

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

367,334

 

 

 

 

 

 

 

 

 

309,395

 

 

 

 

 

 

 

Other liabilities

 

5,276

 

 

 

 

 

 

 

 

 

6,096

 

 

 

 

 

 

 

Stockholders' equity

 

139,003

 

 

 

 

 

 

 

 

 

145,892

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

1,324,008

 

 

 

 

 

 

 

 

 

$

1,377,370

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

23,496

 

 

 

 

 

 

 

 

 

$

23,717

 

 

 

 

Interest rate spread (1)

 

 

 

 

 

 

 

3.78

%

 

 

 

 

 

 

 

 

3.56

%

Net interest margin (2)

 

 

 

 

 

 

 

3.91

%

 

 

 

 

 

 

 

 

3.71

%

Ratio of average interest-earning assets to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

average interest-bearing liabilities

 

 

 

 

 

 

 

152.22

%

 

 

 

 

 

 

 

 

142.64

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.

(2) Net interest margin represents net interest income as a percentage of average interest-earning assets.

(3) Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $494 and $347 for the six months ended June 30, 2022 and 2021, respectively.

(4) Includes dividends received on restricted stock.


Company Contact:

Investor and Media Contact:

James Heslop
President/Chief Executive Officer
Middlefield Banc Corp.
(440) 632-1666 Ext. 3219
JHeslop@middlefieldbank.com

Andrew M. Berger
Managing Director
SM Berger & Company, Inc.
(216) 464-6400
andrew@smberger.com