Middlefield Banc Corp. Reports 2021 Full Year Financial Results

Written by Customer Service on January 25, 2022. Posted in Public Companies.

MIDDLEFIELD, Ohio, Jan. 25, 2022 (GLOBE NEWSWIRE) — Middlefield Banc Corp. (NASDAQ: MBCN) today reported financial results for the three and twelve months ended December 31, 2021.

2021 Financial Highlights (on a year-over-year basis unless noted):

Returned $16.6 million of capital to shareholders through dividends and the repurchase of 512,449 shares
Net income increased 123.2% to a record $18.6 million, compared to $8.3 million
Net interest margin improved by 25 basis points to 3.79%, compared to 3.54%
Total noninterest income increased 20.3% to $7.2 million
Pre-tax, pre-provision⁽¹⁾ income increased 19.4% to $23.4 million
Return on average assets increased to 1.36% from 0.64%
Return on average equity increased to 12.74% from 5.87%
Return on average tangible common equity⁽¹⁾ increased to 14.38% from 6.66%
Efficiency ratio improved to 56.48%, compared to 58.77%
Strong asset quality with nonperforming loans to total loans of 0.49%, compared to 0.71%

“We achieved record earnings in 2021 driven by strong asset quality, the contribution of PPP forgiveness, prudent expense management, and record annual noninterest income,” stated Thomas G. Caldwell, President and Chief Executive Officer. “We also returned a record amount of capital to our shareholders in 2021 through our share repurchase program and growing dividend policy. During 2021, we invested $12.3 million in our share repurchase program, retiring approximately 8.0% of our outstanding shares, and at an average price of $23.99 or 109.6% of our tangible book value of $21.88 at December 31, 2021. In addition, we paid $4.2 million in dividends during the year, reflecting an increase of 10.6% over the prior year.⁽¹⁾”

“We expect loan growth will remain challenging in 2022, as we work to forgive the remaining $34.1 million balance of PPP loans in our loan portfolio at December 31, 2021, and we continue to focus on controlling risk and pricing on loans. However, we are proactively working on several growth initiatives that we expect will improve demand throughout 2022 and beyond. Strategies include enhancing our digital banking offerings, adding new lenders throughout our Northeast Ohio and Central Ohio markets, and pursuing new marketing initiatives that better promote our services to current and perspective customers.”

“Having celebrated our 120^th year in business, I am proud of the milestones we achieved in 2021. I believe Middlefield’s local, community-oriented financial offerings are well positioned to add value to current and prospective customers and look forward to the Company’s success in the future. Finally, our accomplishments are a direct result of the commitment and dedication of our associates and I want to thank everyone at Middlefield for their continued hard work,” concluded Mr. Caldwell.

Income Statement
For the 2021 full year, net interest income increased 11.3% to $48.3 million, compared to $43.4 million for the same period last year. The net interest margin for the 2021 twelve-month period was 3.79%, compared to 3.54% for the same period last year. Net interest income for the 2021 fourth quarter was $12.0 million, compared to $11.3 million for the 2020 fourth quarter. The 6.4% increase in net interest income for the 2021 fourth quarter was largely a result of a 51.7% reduction in interest expense. The net interest margin for the 2021 fourth quarter was 3.82%, compared to 3.49% for the same period of 2020.

For the 2021 full year, noninterest income increased 20.3% to $7.2 million, compared to $6.0 million for the same period last year. Noninterest income for the 2021 fourth quarter was $1.5 million, compared to $1.6 million for the 2020 fourth quarter. These increases were driven primarily through the service charges recognized on deposit account activity.

For the 2021 full year, noninterest expense increased 7.7% to $32.1 million, compared to $29.8 million for the same period last year. For the 2021 fourth quarter, noninterest expense was $7.9 million, compared to $7.8 million for the same period last year. These changes were driven primarily by changes in salaries and benefits expense between the periods.

Net income for the year ended December 31, 2021, was a record $18.6 million, or a record $3.00 per diluted share, compared to $8.3 million, or $1.30 per diluted share for the same period last year. Net income for the 2021 fourth quarter, was $4.8 million, or $0.81 per diluted share, compared to $2.5 million, or $0.39 per diluted share for the same period last year.

Balance Sheet
Total assets at December 31, 2021, were $1.33 billion from $1.39 billion at December 31, 2020. Net loans at December 31, 2021, decreased 11.3% to $967.3 million, compared to $1.09 billion at December 31, 2020, as PPP forgiveness increased. Throughout 2021, Middlefield has helped customers receive $149.6 million of forgiveness payments under the terms of the program, including processing $20.1 million of forgiveness payments during the fourth quarter of 2021. The balance of PPP loans outstanding at December 31, 2021, was $34.1 million.

Total deposits at December 31, 2021, were $1.17 billion, compared to $1.23 billion at December 31, 2020. The 4.8% decrease in deposits was primarily due to a decline in time-based and money market accounts, partially offset by increased noninterest-bearing, savings, and interest-bearing accounts. The investment portfolio was $170.2 million December 31, 2021, compared with $114.4 million at December 31, 2020.

Donald L. Stacy, Chief Financial Officer stated, “We are well positioned to continue returning capital to our shareholders, while supporting our growth oriented strategic plan as a result of our strong balance sheet, liquidity position, and asset quality. The prudent funding of our allowance in 2020, combined with favorable asset quality throughout 2021, has resulted in one of the strongest reserve levels in our 120-year history.”

“Reflecting our commitment to help our communities navigate the Covid-19 pandemic, we helped our customers receive $212.6 million of PPP loans over the past two years, while processing $178.4 million of forgiveness during this period. In addition, we also supported 390 customers during the pandemic through our Covid-19 related deferral programs. At December 31, 2021, there were no loans with Covid-19 related payment modifications,” concluded Mr. Stacy.

Stockholders’ Equity and Dividends
At December 31, 2021, shareholders’ equity increased 1.1% to $145.3 million compared to $143.8 million at December 31, 2020. On a per share basis, shareholders’ equity at December 31, 2021, increased 9.5% to $24.68 compared to $22.54 at the same period last year.

Tangible stockholders’ equity⁽¹⁾ increased 1.5% to $128.9 million for the 2021 fourth quarter, compared to $127.0 million at December 31, 2020. On a per-share basis, tangible stockholders’ equity⁽¹⁾ at December 31, 2021, increased 9.9% to $21.88, compared to $19.91 at December 31, 2020.

For the 2021 full year, cash dividends declared per share increased 15.0% to $0.69 totaling $4.2 million, compared to $0.60 per share or $3.8 million for the same period last year. Dividends in 2021, included a $0.04 per share one-time dividend payment declared in the 2021 fourth quarter.

At December 31, 2021, the Company had an equity-to-assets leverage ratio of 10.92%, compared to 10.33% at December 31, 2020. The year-over-year increase in the Company’s equity-to-assets leverage ratio occurred even as Middlefield invested $12.3 million in its share repurchase program.

Asset Quality
The Company had a negative provision for loan losses for the 2021 fourth quarter of $200,000, versus a provision for loan losses of $2.1 million for the fourth quarter last year. The year-over-year decline in the provision for loan losses was partially due to strong asset quality and last year’s prudent build in the Company’s allowance for loan losses associated with the potential economic impacts caused by the COVID-19 pandemic. The provision for loan losses for 2021 full year was $700,000 compared to $9.8 million for the 2020 full year.

Net recoveries were $308,000, or 0.12% of average loans, annualized, during the 2021 fourth quarter, compared to no net charge-offs for the same quarter last year. For the 2021 full year, net recoveries were $183,000, or 0.02% of average loans, compared to net charge-offs of $3.1 million, or 0.29% of average loans for the full year ended December 31, 2020.

Nonperforming assets at December 31, 2021, improved 22.3% to $11.9 million, compared to $15.2 million at December 31, 2020. Nonperforming loans at December 31 2021, were $4.9 million, a 38.2% decrease from the same period last year. The allowance for loan losses at December 31, 2021, stood at $14.3 million, or 1.46% of total loans, compared to $13.5 million, or 1.22% of total loans at December 31, 2020.

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 $1.33 billion at December 31, 2021. 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.

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; or (9) risk factors mentioned in the reports and registration statements Middlefield Banc Corp. files with the Securities and Exchange Commission. Middlefield Banc Corp. undertakes no obligation to release revisions to these forward-looking statements or to reflect events or circumstances after the date of this press release.

Company Contact:	Investor and Media Contact:
Thomas G. Caldwell President/Chief Executive Officer Middlefield Banc Corp. (440) 632-1666 Ext. 3200 tcaldwell@middlefieldbank.com	Andrew M. Berger Managing Director SM Berger & Company, Inc. (216) 464-6400 andrew@smberger.com

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

		December 31,			September 30,			June 30,			March 31,			December 31,
Balance Sheets (period end)		2021			2021			2021			2021			2020
ASSETS
Cash and due from banks	$	97,172		$	113,177		$	82,435		$	93,037		$	92,874
Federal funds sold		22,322			19,174			10,034			7,436			19,543
Cash and cash equivalents		119,494			132,351			92,469			100,473			112,417
Equity securities, at fair value		819			833			730			690			609
Investment securities available for sale, at fair value		170,199			163,057			150,850			123,218			114,360
Loans held for sale		1,051			676			790			1,260			878
Loans:
Commercial real estate:
Owner occupied		111,470			110,883			109,777			104,379			103,121
Non-owner occupied		283,618			310,222			304,324			304,623			309,424
Multifamily		31,189			30,762			34,926			39,015			39,562
Residential real estate		240,089			232,020			228,102			228,052			233,995
Commercial and industrial		148,812			163,052			200,558			242,651			232,044
Home equity lines of credit		104,355			105,450			107,685			111,474			112,543
Construction and other		54,148			49,378			62,229			64,960			63,573
Consumer installment		8,010			8,515			8,694			9,046			9,823
Total loans		981,691			1,010,282			1,056,295			1,104,200			1,104,085
Less allowance for loan and lease losses		14,342			14,234			14,200			14,122			13,459
Net loans		967,349			996,048			1,042,095			1,090,078			1,090,626
Premises and equipment, net		17,272			17,507			17,680			18,002			18,333
Goodwill		15,071			15,071			15,071			15,071			15,071
Core deposit intangibles		1,403			1,484			1,564			1,644			1,724
Bank-owned life insurance		17,060			16,954			16,846			16,740			16,938
Other real estate owned		6,992			7,090			7,090			7,372			7,387
Accrued interest receivable and other assets		14,296			14,794			15,033			13,545			13,636
TOTAL ASSETS	$	1,331,006		$	1,365,865		$	1,360,218		$	1,388,093		$	1,391,979

		December 31,			September 30,			June 30,			March 31,			December 31,
		2021			2021			2021			2021			2020
LIABILITIES
Deposits:
Noninterest-bearing demand	$	334,171		$	316,770		$	326,665		$	317,224		$	291,347
Interest-bearing demand		196,308			237,576			207,725			215,684			195,722
Money market		177,281			178,423			183,453			187,204			198,493
Savings		260,125			256,114			252,171			259,973			243,888
Time		198,725			211,674			225,271			245,342			295,750
Total deposits		1,166,610			1,200,557			1,195,285			1,225,427			1,225,200

Other borrowings		12,901			12,966			13,031			13,095			17,038
Accrued interest payable and other liabilities		6,160			6,287			5,858			4,901			5,931
TOTAL LIABILITIES		1,185,671			1,219,810			1,214,174			1,243,423			1,248,169
STOCKHOLDERS’ EQUITY
Common stock, no par value; 10,000,000 shares authorized, 7,330,548
shares issued, 5,888,737 shares outstanding as of December 31, 2021		87,131			87,131			87,131			87,073			86,886
Retained earnings		83,971			80,376			76,150			72,729			69,578
Accumulated other comprehensive income		3,462			3,610			3,893			2,917			4,284
Treasury stock, at cost; 1,441,811 shares as of December 31, 2021		(29,229	)		(25,062	)		(21,130	)		(18,049	)		(16,938	)
TOTAL STOCKHOLDERS’ EQUITY		145,335			146,055			146,044			144,670			143,810

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,331,006		$	1,365,865		$	1,360,218		$	1,388,093		$	1,391,979

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,
Statements of Income		2021			2021		2021		2021		2020			2021		2020

INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$	11,586		$	12,258	$	11,885	$	12,167	$	12,041		$	47,896	$	49,003
Interest-earning deposits in other institutions		30			30		12		18		9			90		118
Federal funds sold		1			1		1		–		1			3		22
Investment securities:
Taxable interest		438			461		410		370		297			1,679		909
Tax-exempt interest		732			673		602		558		591			2,565		2,472
Dividends on stock		23			24		26		29		28			102		114
Total interest and dividend income		12,810			13,447		12,936		13,142		12,967			52,335		52,638
INTEREST EXPENSE
Deposits		783			915		1,010		1,205		1,655			3,913		8,962
Short-term borrowings		–			–		–		–		(2	)		–		79
Other borrowings		37			37		39		39		43			152		209
Total interest expense		820			952		1,049		1,244		1,696			4,065		9,250

NET INTEREST INCOME		11,990			12,495		11,887		11,898		11,271			48,270		43,388

Provision (credit) for loan losses		(200	)		–		200		700		2,100			700		9,840

NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES		12,190			12,495		11,687		11,198		9,171			47,570		33,548
NONINTEREST INCOME
Service charges on deposit accounts		906			876		856		787		729			3,425		2,539
(Losses) gains on equity securities		(14	)		102		40		81		56			209		(101	)
Earnings on bank-owned life insurance		106			108		106		226		106			546		427
Gains on sale of loans		118			309		221		592		332			1,240		1,487
Other income		419			426		409		532		387			1,786		1,638
Total noninterest income		1,535			1,821		1,632		2,218		1,610			7,206		5,990

NONINTEREST EXPENSE
Salaries and employee benefits		4,088			4,488		4,321		4,254		4,458			17,151		15,835
Occupancy expense		572			457		549		600		628			2,178		2,158
Equipment expense		358			333		313		357		365			1,361		1,308
Data processing costs		660			736		698		786		617			2,880		2,650
Ohio state franchise tax		285			287		286		286		251			1,144		1,082
Federal deposit insurance expense		50			150		150		144		103			494		423
Professional fees		435			136		323		419		352			1,313		1,359
(Losses) gains on other real estate owned		(66	)		9		22		46		44			11		(172	)
Advertising expense		221			222		221		221		55			885		698
Software amortization expense		119			88		74		80		66			361		351
Core deposit intangible amortization		80			81		80		80		83			321		332
Other expense		1,059			951		889		1,080		803			3,979		3,764
Total noninterest expense		7,861			7,938		7,926		8,353		7,825			32,078		29,788

Income before income taxes		5,864			6,378		5,393		5,063		2,956			22,698		9,750
Income taxes		1,027			1,174		968		896		467			4,065		1,401

NET INCOME	$	4,837		$	5,204	$	4,425	$	4,167	$	2,489		$	18,633	$	8,349

PTPP ⁽¹⁾	$	5,664		$	6,378	$	5,593	$	5,763	$	5,056		$	23,398	$	19,590

(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 Twelve Months Ended
		December 31,			September 30,			June 30,			March 31,			December 31,			December 31,			December 31,
		2021			2021			2021			2021			2020			2021			2020
Per common share data
Net income per common share – basic	$	0.81		$	0.85		$	0.70		$	0.65		$	0.39		$	3.01		$	1.31
Net income per common share – diluted	$	0.81		$	0.85		$	0.70		$	0.65		$	0.39		$	3.00		$	1.30
Dividends declared per share	$	0.21		$	0.16		$	0.16		$	0.16		$	0.15		$	0.69		$	0.60
Book value per share (period end)	$	24.68		$	24.13		$	23.50		$	22.80		$	22.54		$	24.68		$	22.54
Tangible book value per share (period end) ^{(2) (3)}	$	21.88		$	21.39		$	20.82		$	20.17		$	19.91		$	21.88		$	19.91
Dividends declared	$	1,242		$	978		$	1,004		$	1,016		$	957		$	4,240		$	3,834
Dividend yield		3.37	%		2.66	%		2.72	%		3.10	%		2.65	%		2.79	%		2.67	%
Dividend payout ratio		25.68	%		18.79	%		22.69	%		24.38	%		38.45	%		22.76	%		45.92	%
Average shares outstanding – basic		5,951,838			6,136,648			6,297,071			6,364,132			6,378,706			6,186,666			6,385,350
Average shares outstanding – diluted		5,975,333			6,157,181			6,312,230			6,378,493			6,397,681			6,211,076			6,404,524
Period ending shares outstanding		5,888,737			6,054,083			6,215,511			6,344,657			6,379,323			5,888,737			6,379,323

Selected ratios
Return on average assets		1.41	%		1.51	%		1.30	%		1.22	%		0.72	%		1.36	%		0.64	%
Return on average equity		13.17	%		13.95	%		12.10	%		11.65	%		6.76	%		12.74	%		5.87	%
Return on average tangible common equity ^{(2) (4)}		14.85	%		15.71	%		13.65	%		13.17	%		7.64	%		14.38	%		6.66	%
Efficiency ⁽¹⁾		56.65	%		54.15	%		57.28	%		57.91	%		59.29	%		56.48	%		58.77	%
Equity to assets at period end		10.92	%		10.69	%		10.74	%		10.42	%		10.33	%		10.92	%		10.33	%
Noninterest expense to average assets		0.58	%		0.58	%		0.58	%		0.60	%		0.57	%		2.34	%		2.27	%

(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 Twelve Months Ended
	December 31,		September 30,		June 30,		March 31,		December 31,		December 31,		December 31,
Yields	2021		2021		2021		2021		2020		2021		2020
Interest-earning assets:
Loans receivable ⁽²⁾	4.61	%	4.74	%	4.43	%	4.48	%	4.28	%	4.56	%	4.55	%
Investment securities ⁽²⁾	3.30	%	3.37	%	3.47	%	3.75	%	3.65	%	3.45	%	3.68	%
Interest-earning deposits with other banks	0.20	%	0.21	%	0.18	%	0.20	%	0.21	%	0.20	%	0.45	%
Total interest-earning assets	4.07	%	4.20	%	4.05	%	4.11	%	4.00	%	4.11	%	4.28	%
Deposits:
Interest-bearing demand deposits	0.12	%	0.12	%	0.12	%	0.16	%	0.21	%	0.13	%	0.31	%
Money market deposits	0.47	%	0.46	%	0.46	%	0.47	%	0.53	%	0.47	%	0.87	%
Savings deposits	0.06	%	0.06	%	0.06	%	0.07	%	0.11	%	0.06	%	0.24	%
Certificates of deposit	0.90	%	1.08	%	1.19	%	1.28	%	1.56	%	1.13	%	1.87	%
Total interest-bearing deposits	0.36	%	0.41	%	0.46	%	0.53	%	0.70	%	0.44	%	1.02	%
Non-Deposit Funding:
Borrowings	1.13	%	1.13	%	1.18	%	1.10	%	0.95	%	1.13	%	0.75	%
Total interest-bearing liabilities	0.37	%	0.42	%	0.47	%	0.54	%	0.71	%	0.45	%	1.01	%
Cost of deposits	0.26	%	0.30	%	0.34	%	0.40	%	0.54	%	0.32	%	0.79	%
Cost of funds	0.27	%	0.31	%	0.35	%	0.41	%	0.55	%	0.33	%	0.79	%
Net interest margin ⁽¹⁾	3.82	%	3.91	%	3.72	%	3.73	%	3.49	%	3.79	%	3.54	%

(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
		December 31,			September 30,			June 30,			March 31,			December 31,
Asset quality data		2021			2021			2021			2021			2020
(Dollar amounts in thousands, unaudited)
Nonperforming loans ⁽¹⁾	$	4,859		$	6,806		$	7,760		$	8,958		$	7,858
Other real estate owned		6,992			7,090			7,090			7,372			7,387
Nonperforming assets	$	11,851		$	13,896		$	14,850		$	16,330		$	15,245

Allowance for loan losses	$	14,342		$	14,234		$	14,200		$	14,122		$	13,459
Allowance for loan losses/total loans		1.46	%		1.41	%		1.34	%		1.28	%		1.22	%
Net charge-offs (recoveries):
Quarter-to-date	$	(308	)	$	(34	)	$	122		$	37		$	0
Year-to-date		(183	)		125			159			37			3,149
Net charge-offs (recoveries) to average loans, annualized:
Quarter-to-date		(0.12	)%		(0.01	)%		0.05	%		0.01	%		0.00	%
Year-to-date		(0.02	)%		0.02	%		0.03	%		0.01	%		0.29	%

Nonperforming loans/total loans		0.49	%		0.67	%		0.73	%		0.81	%		0.71	%
Allowance for loan losses/nonperforming loans		295.16	%		209.14	%		182.99	%		157.65	%		171.28	%
Nonperforming assets/total assets		0.89	%		1.02	%		1.09	%		1.18	%		1.10	%
(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)		December 31,		September 30,		June 30,		March 31,		December 31,
		2021		2021		2021		2021		2020

Stockholders’ Equity	$	145,335	$	146,055	$	146,044	$	144,670	$	143,810
Less Goodwill and other intangibles		16,474		16,555		16,635		16,715		16,795
Tangible Common Equity	$	128,861	$	129,500	$	129,409	$	127,955	$	127,015

Shares outstanding		5,888,737		6,054,083		6,215,511		6,344,657		6,379,323
Tangible book value per share	$	21.88	$	21.39	$	20.82	$	20.17	$	19.91

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,
		2021		2021		2021		2021		2020		2021		2020

Average Stockholders’ Equity	$	145,716	$	148,048	$	146,719	$	145,065	$	146,374	$	146,237	$	142,241
Less Average Goodwill and other intangibles		16,513		16,594		16,674		16,754		16,836		16,634		16,960
Average Tangible Common Equity	$	129,203	$	131,454	$	130,045	$	128,311	$	129,538	$	129,603	$	125,281

Net income	$	4,837	$	5,204	$	4,425	$	4,167	$	2,489	$	18,633	$	8,349
Return on average tangible common equity (annualized)		14.85%		15.71%		13.65%		13.17%		7.64%		14.38%		6.66%

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,
		2021		2021		2021		2021		2020		2021		2020

Net income	$	4,837	$	5,204	$	4,425	$	4,167	$	2,489	$	18,633	$	8,349
Add Income Taxes		1,027		1,174		968		896		467		4,065		1,401
Add Provision for loan losses		(200)		–		200		700		2,100		700		9,840
PTPP	$	5,664	$	6,378	$	5,593	$	5,763	$	5,056	$	23,398	$	19,590

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

		For the Three Months Ended
		December 31,						December 31,
		2021						2020
		Average			Average			Average			Average
		Balance		Interest	Yield/Cost			Balance		Interest	Yield/Cost
Interest-earning assets:
Loans receivable ⁽³⁾	$	999,229	$	11,586	4.61	%	$	1,121,259	$	12,041	4.28	%
Investment securities ⁽³⁾		164,254		1,170	3.30	%		113,801		888	3.65	%
Interest-earning deposits with other banks ⁽⁴⁾		104,804		54	0.20	%		70,803		38	0.21	%
Total interest-earning assets		1,268,287		12,810	4.07	%		1,305,863		12,967	4.00	%
Noninterest-earning assets		90,556						78,064
Total assets	$	1,358,843					$	1,383,927
Interest-bearing liabilities:
Interest-bearing demand deposits	$	212,861	$	66	0.12	%	$	186,933	$	97	0.21	%
Money market deposits		180,201		214	0.47	%		191,771		255	0.53	%
Savings deposits		257,344		39	0.06	%		238,991		66	0.11	%
Certificates of deposit		204,904		464	0.90	%		316,293		1,237	1.56	%
Short-term borrowings		–		–	0.00	%		26		–	0.00	%
Other borrowings		12,934		37	1.13	%		17,068		41	0.96	%
Total interest-bearing liabilities		868,244		820	0.37	%		951,082		1,696	0.71	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		337,900						281,608
Other liabilities		6,983						4,863
Stockholders’ equity		145,716						146,374
Total liabilities and stockholders’ equity	$	1,358,843					$	1,383,927
Net interest income			$	11,990					$	11,271
Interest rate spread ⁽¹⁾					3.70	%					3.29	%
Net interest margin ⁽²⁾					3.82	%					3.49	%
Ratio of average interest-earning assets to
average interest-bearing liabilities					146.07	%					137.30	%

(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 $210 and $178 for the three months ended December 31, 2021 and 2020, respectively
(4) Includes dividends received on restricted stock.

		For the Three Months Ended
		December 31,						September 30,
		2021						2021
		Average			Average			Average			Average
		Balance		Interest	Yield/Cost			Balance		Interest	Yield/Cost
Interest-earning assets:
Loans receivable ⁽³⁾	$	999,229	$	11,586	4.61	%	$	1,027,935	$	12,258	4.74	%
Investment securities ⁽³⁾		164,254		1,170	3.30	%		154,718		1,134	3.37	%
Interest-earning deposits with other banks ⁽⁴⁾		104,804		54	0.20	%		105,910		55	0.21	%
Total interest-earning assets		1,268,287		12,810	4.07	%		1,288,563		13,447	4.20	%
Noninterest-earning assets		90,556						82,952
Total assets	$	1,358,843					$	1,371,515
Interest-bearing liabilities:
Interest-bearing demand deposits	$	212,861	$	66	0.12	%	$	225,264	$	67	0.12	%
Money market deposits		180,201		214	0.47	%		182,831		214	0.46	%
Savings deposits		257,344		39	0.06	%		253,960		38	0.06	%
Certificates of deposit		204,904		464	0.90	%		218,323		596	1.08	%
Short-term borrowings		–		–	0.00	%		–		–	0.00	%
Other borrowings		12,934		37	1.13	%		12,999		37	1.13	%
Total interest-bearing liabilities		868,244		820	0.37	%		893,377		952	0.42	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		337,900						323,726
Other liabilities		6,983						6,364
Stockholders’ equity		145,716						148,048
Total liabilities and stockholders’ equity	$	1,358,843					$	1,371,515
Net interest income			$	11,990					$	12,495
Interest rate spread ⁽¹⁾					3.70	%					3.78	%
Net interest margin ⁽²⁾					3.82	%					3.91	%
Ratio of average interest-earning assets to
average interest-bearing liabilities					146.07	%					144.24	%

(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 $210 and $195 for the three months ended December 31, 2021, and September 30, 2021, respectively.
(4) Includes dividends received on restricted stock.

	For the Twelve Months Ended
	December 31,						December 31,
	2021						2020
	Average				Average		Average				Average
	Balance		Interest		Yield/Cost		Balance		Interest		Yield/Cost
Interest-earning assets:
Loans receivable ⁽³⁾	$	1,052,351	$	47,896	4.56	%	$	1,079,788	$	49,003	4.55	%
Investment securities ⁽³⁾	142,705		4,244		3.45	%	109,863		3,381		3.68	%
Interest-earning deposits with other banks ⁽⁴⁾	97,417		195		0.20	%	56,222		254		0.45	%
Total interest-earning assets	1,292,473		52,335		4.11	%	1,245,873		52,638		4.28	%
Noninterest-earning assets	78,802						68,219
Total assets	$	1,371,275					$	1,314,092
Interest-bearing liabilities:
Interest-bearing demand deposits	$	212,063	$	274	0.13	%	$	144,897	$	445	0.31	%
Money market deposits	186,009		869		0.47	%	172,587		1,501		0.87	%
Savings deposits	255,267		162		0.06	%	211,151		510		0.24	%
Certificates of deposit	231,662		2,608		1.13	%	347,609		6,506		1.87	%
Short-term borrowings	85		–		0.00	%	22,637		79		0.35	%
Other borrowings	13,313		152		1.14	%	15,629		209		1.34	%
Total interest-bearing liabilities	898,399		4,065		0.45	%	914,510		9,250		1.01	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits	320,104						252,615
Other liabilities	6,535						4,726
Stockholders’ equity	146,237						142,241
Total liabilities and stockholders’ equity	$	1,371,275					$	1,314,092
Net interest income			$	48,270					$	43,388
Interest rate spread ⁽¹⁾					3.66	%					3.27	%
Net interest margin ⁽²⁾					3.79	%					3.54	%
Ratio of average interest-earning assets to
average interest-bearing liabilities					143.86	%					136.23	%

(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 $752 and $742 for 2021 and 2020, respectively.
(4) Includes dividends received on restricted stock.

Middlefield Banc Corp. Reports 2021 Full Year Financial Results

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Cookie Notice