Middlefield Banc Corp. Reports 2023 Full-Year Financial Results
MIDDLEFIELD, Ohio, Jan. 26, 2024 (GLOBE NEWSWIRE) — 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 Statement
Net 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 Sheet
Total 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 Dividends
At 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 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) 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 Officer Middlefield Banc Corp. (419) 673-1217 rzimmerly@middlefieldbank.com | Andrew M. Berger Managing Director SM Berger & Company, Inc. (216) 464-6400 andrew@smberger.com |
