MIDDLEFIELD, Ohio, Oct. 18, 2022 (GLOBE NEWSWIRE) -- Middlefield Banc Corp. (NASDAQ: MBCN) today reported financial results for the three and nine months ended September 30, 2022.
2022 Nine Month Financial Highlights (on a year-over-year basis unless noted):
- Returned $6.6 million of capital to shareholders through dividends and the repurchase of 141,002 shares at an average price of $25.83 per share
- Net income was $12.2 million, or $2.08 per diluted share, compared to $13.8 million, or $2.19 per diluted share
- Nine-month pre-tax income benefited from $1.2 million of accelerated net fees associated with the Paycheck Protection Program ("PPP"), compared to $3.1 million in the 2021 nine-month period
- Year-to-date net income was negatively impacted by $969,000 of one-time expenses associated with the proposed Liberty Bancshares, Inc. merger
- Net interest margin improved by 24 basis points to 4.02%, compared to 3.78%
- Total loans were $995.2 million, compared to $981.7 million at December 31, 2021
- Total loans increased by $46.6 million, or 6.6% annualized from December 31, 2021, without the impact of PPP loan forgiveness
- Return on average assets was 1.24%, compared to 1.34%
- Return on average equity was 11.96%, compared to 12.58%
- Return on average tangible common equity(1) was 13.59%, compared to 14.20%
- Strong asset quality with nonperforming loans to total loans of 0.37%, compared to 0.67%
- Allowance for loan losses was 1.46% of total loans, compared to 1.41%
- Merger with Liberty Bancshares, Inc. on schedule to close during the 2022 fourth quarter
"2022 is shaping up to be a strong year of core earnings and asset growth. Total loans increased 1.7% from the second quarter and are up 4.0% on a year-over-year basis, without the impact of PPP loan forgiveness. In addition, year-to-date profitability has benefitted from robust asset quality and a higher net interest margin, partially offsetting a $1.9 million year-over-year reduction in PPP fees and nearly $1.0 million of one-time expenses associated with the proposed Liberty Bancshares, Inc. merger," stated James R. Heslop, II, President and Chief Executive Officer.
"As we navigate a rising rate and more fluid economic environment, we are focused on supporting the financial needs of our Ohio communities, maintaining strong asset quality, and completing the merger with Liberty Bancshares, Inc. The merger is on track to close during the 2022 fourth quarter and 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," concluded Mr. Heslop.
Income Statement
Net interest income for the nine-month period ended September 30, 2022, was $36.1 million, compared to $36.2 million for the same period last year. Year-to-date, the net interest margin was 4.02%, compared to 3.78% for the same period last year. Net interest income for the 2022 third quarter was $12.6 million, compared to $12.5 million for the 2021 third quarter. The 1.1% increase in net interest income for the 2022 third quarter from the same period in 2021, was largely a result of higher interest income and lower interest expense. The net interest margin for the 2022 third quarter was 4.23%, compared to 3.90% for the same period of 2021.
For the 2022 nine-month period, noninterest income was $4.3 million, compared to $5.7 million for the same period last year. Noninterest income for the 2022 third quarter was $1.5 million, compared to $1.8 million for the same period last year.
For the 2022 nine-month period, noninterest expense increased 6.5% to $25.7 million, compared to $24.1 million for the same period last year. Operating costs in the 2022 third quarter increased 12.4% to $8.9 million from $7.9 million for the 2021 third quarter. The Company incurred $390,000 during the 2022 third quarter and $969,000 during the 2022 nine-month period of additional operating expenses associated with the proposed Liberty Bancshares, Inc. merger.
Net income for the 2022 nine-month period, was $12.2 million, or $2.08 per diluted share, compared to $13.8 million, or $2.19 per diluted share for the same period last year. Net income for the 2022 third quarter, was $4.2 million, or $0.73 per diluted share, compared to $5.2 million, or $0.85 per diluted share for the same period last year.
Balance Sheet
Total assets at September 30, 2022, decreased slightly to approximately $1.35 billion from $1.37 billion at September 30, 2021. Net loans at September 30, 2022, decreased 1.5% to $980.7 million, compared to $996.0 million at September 30, 2021. Since 2020, Middlefield has helped customers receive $211.6 million of forgiveness payments under the terms of the Paycheck Protection Program, including processing $0.4 million of forgiveness payments during the third quarter of 2022, and $33.1 million of forgiveness payments year-to-date. The balance of PPP loans outstanding at September 30, 2022, was $1.0 million.
Total deposits at September 30, 2022, were $1.13 billion, compared to $1.20 billion at September 30, 2021. The 5.8% decrease in deposits was primarily due to declines in interest-bearing, time-based, money market and savings accounts, partially offset by increased noninterest-bearing accounts. The investment portfolio was $162.1 million at September 30, 2022, compared with $163.1 million at September 30, 2021.
Donald L. Stacy, Chief Financial Officer, stated, "The growth we have experienced in our net interest margin throughout 2022 is encouraging, driven by an 18-basis point increase in our yield on earning assets, and a 6-basis point improvement in our cost of funds. As competition for deposits increases, we expect our cost of funds to increase in future periods. Asset quality remains strong across our portfolio, with only $3.7 million of nonperforming loans at September 30, 2022, which is a 45.8% reduction from September 30, 2021, and represents just 0.37% of total loans at the end of the 2022 third quarter. With a higher degree of economic uncertainty, we have maintained a robust allowance for loan losses, which was 1.46% of total loans at September 30, 2022. We believe our strong balance sheet and favorable capital position will allow us to navigate a more challenging economic cycle, while simultaneously allocating capital to support our long-term growth strategies, dividend payment, and share repurchase program."
Mr. Stacy continued, "Year-to-date, we have repurchased 141,002 shares of our common stock at a total cost of $3.6 million. This includes 45,638 shares repurchased during the 2022 third quarter at an average price of $26.74 per share at September 30, 2022. We have 246,549 shares remaining under our repurchase program."
Stockholders' Equity and Dividends
At September 30, 2022, stockholders' equity was $122.9 million compared to $146.1 million at September 30, 2021. The 15.9% year-over-year decline in stockholders' equity was primarily due to an increase in the unrealized loss on the available-for-sale investment portfolio as well as the Company's stock repurchase program. On a per-share basis, shareholders' equity at September 30, 2022, was $21.30 compared to $24.13 at September 30, 2021.
At September 30, 2022, tangible stockholders' equity(1) was $106.6 million, compared to $129.5 million at September 30, 2021. On a per-share basis, tangible stockholders' equity(1) was $18.48 at September 30, 2022, compared to $21.39 at September 30, 2021.
Through the 2022 nine-month period, the Company declared cash dividends of $0.51 per share, compared to $0.48 per share for the same period last year.
At September 30, 2022, the Company had an equity-to-assets ratio of 9.09%, compared to 10.69% at September 30, 2021.
Asset Quality
No provision for loan losses was recorded for both the 2022 and 2021 third quarters. There was no provision for loan losses for the 2022 nine-month period versus $900,000 for the same period last year.
Net charge-offs were $18,000, or 0.01% of average loans, annualized, during the 2022 third quarter, compared to net recoveries of $34,000, or 0.01% of average loans, annualized, at September 30, 2021. Year-to-date net recoveries were $190,000, or 0.02% of average loans, annualized, compared to net charge-offs of $125,000, or 0.02% of average loans, annualized for the nine-months ended September 30, 2021.
Nonperforming loans at September 30, 2022, were $3.7 million, compared to $6.8 million at September 30, 2021. Nonperforming assets at September 30, 2022, were $10.5 million, compared to $13.9 million at September 30, 2021. The allowance for loan losses at September 30, 2022, stood at $14.5 million, or 1.46% of total loans, compared to $14.2 million, or 1.41% of total loans at September 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 $1.35 billion at September 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)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) 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.
| MIDDLEFIELD BANC CORP. | |||||||||||||||||||||||||||||||
| Consolidated Selected Financial Highlights | |||||||||||||||||||||||||||||||
| (Dollar amounts in thousands, unaudited) | |||||||||||||||||||||||||||||||
| Balance Sheets (period end) | September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | ||||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||||||||
| Cash and due from banks | $ | 119,777 | $ | 60,114 | $ | 78,804 | $ | 97,172 | $ | 113,177 | |||||||||||||||||||||
| Federal funds sold | 8,800 | 19,039 | 29,474 | 22,322 | 19,174 | ||||||||||||||||||||||||||
| Cash and cash equivalents | 128,577 | 79,153 | 108,278 | 119,494 | 132,351 | ||||||||||||||||||||||||||
| Equity securities, at fair value | 972 | 779 | 851 | 818 | 833 | ||||||||||||||||||||||||||
| Investment securities available for sale, at fair value | 162,064 | 171,958 | 175,216 | 170,199 | 163,057 | ||||||||||||||||||||||||||
| Loans held for sale | - | - | 9 | 1,051 | 676 | ||||||||||||||||||||||||||
| Loans: | |||||||||||||||||||||||||||||||
| Commercial real estate: | |||||||||||||||||||||||||||||||
| Owner occupied | 120,912 | 120,771 | 113,590 | 111,470 | 110,883 | ||||||||||||||||||||||||||
| Non-owner occupied | 285,419 | 288,334 | 293,745 | 283,618 | 310,222 | ||||||||||||||||||||||||||
| Multifamily | 38,063 | 29,152 | 29,385 | 31,189 | 30,762 | ||||||||||||||||||||||||||
| Residential real estate | 247,612 | 246,453 | 244,747 | 240,089 | 232,020 | ||||||||||||||||||||||||||
| Commercial and industrial | 146,987 | 137,398 | 131,683 | 148,812 | 163,052 | ||||||||||||||||||||||||||
| Home equity lines of credit | 114,344 | 111,730 | 106,300 | 104,355 | 105,450 | ||||||||||||||||||||||||||
| Construction and other | 33,748 | 35,988 | 50,152 | 54,148 | 49,378 | ||||||||||||||||||||||||||
| Consumer installment | 8,110 | 8,171 | 8,118 | 8,010 | 8,515 | ||||||||||||||||||||||||||
| Total loans | 995,195 | 977,997 | 977,720 | 981,691 | 1,010,282 | ||||||||||||||||||||||||||
| Less allowance for loan and lease losses | 14,532 | 14,550 | 14,492 | 14,342 | 14,234 | ||||||||||||||||||||||||||
| Net loans | 980,663 | 963,447 | 963,228 | 967,349 | 996,048 | ||||||||||||||||||||||||||
| Premises and equipment, net | 16,215 | 17,030 | 17,142 | 17,272 | 17,507 | ||||||||||||||||||||||||||
| Goodwill | 15,071 | 15,071 | 15,071 | 15,071 | 15,071 | ||||||||||||||||||||||||||
| Core deposit intangibles | 1,171 | 1,249 | 1,326 | 1,403 | 1,484 | ||||||||||||||||||||||||||
| Bank-owned life insurance | 17,382 | 17,274 | 17,166 | 17,060 | 16,954 | ||||||||||||||||||||||||||
| Other real estate owned | 6,792 | 6,792 | 6,992 | 6,992 | 7,090 | ||||||||||||||||||||||||||
| Accrued interest receivable and other assets | 22,104 | 20,624 | 18,019 | 14,297 | 14,794 | ||||||||||||||||||||||||||
| TOTAL ASSETS | $ | 1,351,011 | $ | 1,293,377 | $ | 1,323,298 | $ | 1,331,006 | $ | 1,365,865 | |||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||||||||||||||
| 2022 | 2022 | 2022 | 2021 | 2021 | |||||||||||||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||||||||
| Noninterest-bearing demand | $ | 383,675 | $ | 379,872 | $ | 361,251 | $ | 334,171 | $ | 316,770 | |||||||||||||||||||||
| Interest-bearing demand | 160,112 | 154,788 | 162,010 | 196,308 | 237,576 | ||||||||||||||||||||||||||
| Money market | 162,052 | 185,494 | 187,807 | 177,281 | 178,423 | ||||||||||||||||||||||||||
| Savings | 247,466 | 252,179 | 264,784 | 260,125 | 256,114 | ||||||||||||||||||||||||||
| Time | 177,182 | 174,833 | 191,320 | 198,725 | 211,674 | ||||||||||||||||||||||||||
| Total deposits | 1,130,487 | 1,147,166 | 1,167,172 | 1,166,610 | 1,200,557 | ||||||||||||||||||||||||||
| Short-term borrowings | 80,000 | - | - | - | - | ||||||||||||||||||||||||||
| Other borrowings | 12,107 | 12,910 | 12,975 | 12,901 | 12,966 | ||||||||||||||||||||||||||
| Accrued interest payable and other liabilities | 5,562 | 5,081 | 5,507 | 6,160 | 6,287 | ||||||||||||||||||||||||||
| TOTAL LIABILITIES | 1,228,156 | 1,165,157 | 1,185,654 | 1,185,671 | 1,219,810 | ||||||||||||||||||||||||||
| STOCKHOLDERS' EQUITY | |||||||||||||||||||||||||||||||
| Common stock, no par value; 10,000,000 shares authorized, 7,350,616 | |||||||||||||||||||||||||||||||
| shares issued, 5,767,803 shares outstanding as of September 30, 2022 | 87,640 | 87,562 | 87,562 | 87,131 | 87,131 | ||||||||||||||||||||||||||
| Retained earnings | 93,166 | 89,900 | 86,804 | 83,971 | 80,376 | ||||||||||||||||||||||||||
| Accumulated other comprehensive (loss) income | (25,080 | ) | (17,591 | ) | (6,674 | ) | 3,462 | 3,610 | |||||||||||||||||||||||
| Treasury stock, at cost; 1,582,813 shares as of September 30, 2022 | (32,871 | ) | (31,651 | ) | (30,048 | ) | (29,229 | ) | (25,062 | ) | |||||||||||||||||||||
| TOTAL STOCKHOLDERS' EQUITY | 122,855 | 128,220 | 137,644 | 145,335 | 146,055 | ||||||||||||||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,351,011 | $ | 1,293,377 | $ | 1,323,298 | $ | 1,331,006 | $ | 1,365,865 | |||||||||||||||||||||
| MIDDLEFIELD BANC CORP. | |||||||||||||||||||||||||||||||
| Consolidated Selected Financial Highlights | |||||||||||||||||||||||||||||||
| (Dollar amounts in thousands, unaudited) | |||||||||||||||||||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||
| Statements of Income | 2022 | 2022 | 2022 | 2021 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||
| INTEREST AND DIVIDEND INCOME | |||||||||||||||||||||||||||||||
| Interest and fees on loans | $ | 11,892 | $ | 11,268 | $ | 10,985 | $ | 11,586 | $ | 12,258 | $ | 34,145 | $ | 36,310 | |||||||||||||||||
| Interest-earning deposits in other institutions | 134 | 74 | 24 | 30 | 30 | 232 | 60 | ||||||||||||||||||||||||
| Federal funds sold | 51 | 46 | 3 | 1 | 1 | 100 | 2 | ||||||||||||||||||||||||
| Investment securities: | |||||||||||||||||||||||||||||||
| Taxable interest | 449 | 442 | 443 | 438 | 461 | 1,334 | 1,241 | ||||||||||||||||||||||||
| Tax-exempt interest | 982 | 955 | 784 | 732 | 673 | 2,721 | 1,833 | ||||||||||||||||||||||||
| Dividends on stock | 59 | 33 | 24 | 23 | 24 | 116 | 79 | ||||||||||||||||||||||||
| Total interest and dividend income | 13,567 | 12,818 | 12,263 | 12,810 | 13,447 | 38,648 | 39,525 | ||||||||||||||||||||||||
| INTEREST EXPENSE | |||||||||||||||||||||||||||||||
| Deposits | 812 | 709 | 726 | 783 | 915 | 2,247 | 3,130 | ||||||||||||||||||||||||
| Short-term borrowings | 44 | - | - | - | - | 44 | - | ||||||||||||||||||||||||
| Other borrowings | 112 | 81 | 69 | 67 | 68 | 262 | 214 | ||||||||||||||||||||||||
| Total interest expense | 968 | 790 | 795 | 850 | 983 | 2,553 | 3,344 | ||||||||||||||||||||||||
| NET INTEREST INCOME | 12,599 | 12,028 | 11,468 | 11,960 | 12,464 | 36,095 | 36,181 | ||||||||||||||||||||||||
| Provision for loan losses | - | - | - | (200 | ) | - | - | 900 | |||||||||||||||||||||||
| NET INTEREST INCOME AFTER PROVISION | |||||||||||||||||||||||||||||||
| FOR LOAN LOSSES | 12,599 | 12,028 | 11,468 | 12,160 | 12,464 | 36,095 | 35,281 | ||||||||||||||||||||||||
| NONINTEREST INCOME | |||||||||||||||||||||||||||||||
| Service charges on deposit accounts | 1,004 | 956 | 914 | 906 | 876 | 2,874 | 2,519 | ||||||||||||||||||||||||
| (Loss) gain on equity securities | (57 | ) | (72 | ) | 33 | (14 | ) | 102 | (96 | ) | 223 | ||||||||||||||||||||
| Earnings on bank-owned life insurance | 108 | 108 | 106 | 106 | 108 | 322 | 440 | ||||||||||||||||||||||||
| Gains on sale of loans | 7 | 18 | 3 | 118 | 309 | 28 | 1,122 | ||||||||||||||||||||||||
| Revenue from investment services | 233 | 153 | 141 | 198 | 190 | 527 | 529 | ||||||||||||||||||||||||
| Other income | 251 | 220 | 206 | 221 | 236 | 677 | 838 | ||||||||||||||||||||||||
| Total noninterest income | 1,546 | 1,383 | 1,403 | 1,535 | 1,821 | 4,332 | 5,671 | ||||||||||||||||||||||||
| NONINTEREST EXPENSE | |||||||||||||||||||||||||||||||
| Salaries and employee benefits | 4,491 | 3,785 | 4,386 | 4,088 | 4,488 | 12,662 | 13,063 | ||||||||||||||||||||||||
| Occupancy expense | 458 | 583 | 505 | 542 | 426 | 1,546 | 1,506 | ||||||||||||||||||||||||
| Equipment expense | 233 | 274 | 315 | 358 | 333 | 822 | 1,003 | ||||||||||||||||||||||||
| Data processing and information technology costs | 985 | 822 | 844 | 851 | 845 | 2,650 | 2,447 | ||||||||||||||||||||||||
| Ohio state franchise tax | 293 | 292 | 293 | 285 | 287 | 878 | 859 | ||||||||||||||||||||||||
| Federal deposit insurance expense | 84 | 90 | 50 | 50 | 150 | 224 | 444 | ||||||||||||||||||||||||
| Professional fees | 280 | 383 | 455 | 435 | 136 | 1,118 | 878 | ||||||||||||||||||||||||
| Net loss (gain) on other real estate owned | 1 | 206 | 8 | (66 | ) | 9 | 215 | 77 | |||||||||||||||||||||||
| Advertising expense | 268 | 229 | 228 | 221 | 222 | 725 | 664 | ||||||||||||||||||||||||
| Software amortization expense | 27 | 40 | 48 | 119 | 88 | 115 | 242 | ||||||||||||||||||||||||
| Core deposit intangible amortization | 78 | 77 | 77 | 80 | 81 | 232 | 241 | ||||||||||||||||||||||||
| Merger-related costs | 390 | 579 | - | - | - | 969 | - | ||||||||||||||||||||||||
| Other expense | 1,298 | 1,175 | 1,057 | 868 | 842 | 3,531 | 2,694 | ||||||||||||||||||||||||
| Total noninterest expense | 8,886 | 8,535 | 8,266 | 7,831 | 7,907 | 25,687 | 24,118 | ||||||||||||||||||||||||
| Income before income taxes | 5,259 | 4,876 | 4,605 | 5,864 | 6,378 | 14,740 | 16,834 | ||||||||||||||||||||||||
| Income taxes | 1,010 | 787 | 772 | 1,027 | 1,174 | 2,569 | 3,038 | ||||||||||||||||||||||||
| NET INCOME | $ | 4,249 | $ | 4,089 | $ | 3,833 | $ | 4,837 | $ | 5,204 | $ | 12,171 | $ | 13,796 | |||||||||||||||||
| PTPP (1) | $ | 5,259 | $ | 4,876 | $ | 4,605 | $ | 5,664 | $ | 6,378 | $ | 14,740 | $ | 17,734 | |||||||||||||||||
| (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 Nine Months Ended | ||||||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||
| 2022 | 2022 | 2022 | 2021 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
| Per common share data | |||||||||||||||||||||||||||||||
| Net income per common share - basic | $ | 0.73 | $ | 0.70 | $ | 0.65 | $ | 0.81 | $ | 0.85 | $ | 2.08 | $ | 2.20 | |||||||||||||||||
| Net income per common share - diluted | $ | 0.73 | $ | 0.70 | $ | 0.65 | $ | 0.81 | $ | 0.85 | $ | 2.08 | $ | 2.19 | |||||||||||||||||
| Dividends declared per share | $ | 0.17 | $ | 0.17 | $ | 0.17 | $ | 0.21 | $ | 0.16 | $ | 0.51 | $ | 0.48 | |||||||||||||||||
| Book value per share (period end) | $ | 21.30 | $ | 22.07 | $ | 23.43 | $ | 24.68 | $ | 24.13 | $ | 21.30 | $ | 24.13 | |||||||||||||||||
| Tangible book value per share (period end) (2) (3) | $ | 18.48 | $ | 19.26 | $ | 20.64 | $ | 21.88 | $ | 21.39 | $ | 18.48 | $ | 21.39 | |||||||||||||||||
| Dividends declared | $ | 983 | $ | 993 | $ | 1,000 | $ | 1,242 | $ | 978 | $ | 2,976 | $ | 2,998 | |||||||||||||||||
| Dividend yield | 2.49 | % | 2.71 | % | 2.78 | % | 3.37 | % | 2.66 | % | 2.52 | % | 2.69 | % | |||||||||||||||||
| Dividend payout ratio | 23.13 | % | 24.28 | % | 26.09 | % | 25.68 | % | 18.79 | % | 24.45 | % | 21.73 | % | |||||||||||||||||
| Average shares outstanding - basic | 5,792,773 | 5,851,422 | 5,879,025 | 5,951,838 | 6,136,648 | 5,840,757 | 6,265,803 | ||||||||||||||||||||||||
| Average shares outstanding - diluted | 5,805,799 | 5,860,098 | 5,889,836 | 5,975,333 | 6,157,181 | 5,853,783 | 6,287,556 | ||||||||||||||||||||||||
| Period ending shares outstanding | 5,767,803 | 5,810,351 | 5,873,565 | 5,888,737 | 6,054,083 | 5,767,803 | 6,054,083 | ||||||||||||||||||||||||
| Selected ratios | |||||||||||||||||||||||||||||||
| Return on average assets | 1.32 | % | 1.25 | % | 1.17 | % | 1.41 | % | 1.51 | % | 1.24 | % | 1.34 | % | |||||||||||||||||
| Return on average equity | 12.94 | % | 12.30 | % | 10.75 | % | 13.17 | % | 13.95 | % | 11.96 | % | 12.58 | % | |||||||||||||||||
| Return on average tangible common equity (2) (4) | 14.79 | % | 14.02 | % | 12.13 | % | 14.85 | % | 15.71 | % | 13.59 | % | 14.20 | % | |||||||||||||||||
| Efficiency (1) | 61.07 | % | 61.83 | % | 62.54 | % | 56.56 | % | 54.05 | % | 61.79 | % | 56.42 | % | |||||||||||||||||
| Equity to assets at period end | 9.09 | % | 9.91 | % | 10.40 | % | 10.92 | % | 10.69 | % | 9.09 | % | 10.69 | % | |||||||||||||||||
| Noninterest expense to average assets | 0.69 | % | 0.65 | % | 0.62 | % | 0.58 | % | 0.58 | % | 1.96 | % | 1.75 | % | |||||||||||||||||
| (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 Nine Months Ended | ||||||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||
| Yields | 2022 | 2022 | 2022 | 2021 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||||||||||
| Loans receivable (2) | 4.78 | % | 4.66 | % | 4.53 | % | 4.61 | % | 4.74 | % | 4.66 | % | 4.54 | % | |||||||||||||||||
| Investment securities (2) | 3.90 | % | 3.76 | % | 3.41 | % | 3.30 | % | 3.37 | % | 3.69 | % | 3.51 | % | |||||||||||||||||
| Interest-earning deposits with other banks | 2.06 | % | 0.77 | % | 0.23 | % | 0.20 | % | 0.21 | % | 0.82 | % | 0.20 | % | |||||||||||||||||
| Total interest-earning assets | 4.55 | % | 4.28 | % | 4.06 | % | 4.07 | % | 4.20 | % | 4.30 | % | 4.12 | % | |||||||||||||||||
| Deposits: | |||||||||||||||||||||||||||||||
| Interest-bearing demand deposits | 0.22 | % | 0.15 | % | 0.14 | % | 0.12 | % | 0.12 | % | 0.17 | % | 0.13 | % | |||||||||||||||||
| Money market deposits | 0.46 | % | 0.49 | % | 0.47 | % | 0.47 | % | 0.46 | % | 0.47 | % | 0.47 | % | |||||||||||||||||
| Savings deposits | 0.19 | % | 0.06 | % | 0.06 | % | 0.06 | % | 0.06 | % | 0.10 | % | 0.06 | % | |||||||||||||||||
| Certificates of deposit | 0.96 | % | 0.83 | % | 0.87 | % | 0.90 | % | 1.08 | % | 0.89 | % | 1.19 | % | |||||||||||||||||
| Total interest-bearing deposits | 0.43 | % | 0.36 | % | 0.37 | % | 0.36 | % | 0.41 | % | 0.39 | % | 0.47 | % | |||||||||||||||||
| Non-Deposit Funding: | |||||||||||||||||||||||||||||||
| Borrowings | 2.94 | % | 2.51 | % | 2.16 | % | 2.09 | % | 2.08 | % | 2.61 | % | 1.14 | % | |||||||||||||||||
| Total interest-bearing liabilities | 0.50 | % | 0.39 | % | 0.39 | % | 0.37 | % | 0.44 | % | 0.43 | % | 0.48 | % | |||||||||||||||||
| Cost of deposits | 0.29 | % | 0.24 | % | 0.25 | % | 0.26 | % | 0.30 | % | 0.26 | % | 0.35 | % | |||||||||||||||||
| Cost of funds | 0.34 | % | 0.27 | % | 0.27 | % | 0.27 | % | 0.31 | % | 0.29 | % | 0.35 | % | |||||||||||||||||
| Net interest margin (1) | 4.23 | % | 4.02 | % | 3.80 | % | 3.82 | % | 3.90 | % | 4.02 | % | 3.78 | % | |||||||||||||||||
| (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 | |||||||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||||||||||||||
| Asset quality data | 2022 | 2022 | 2022 | 2021 | 2021 | ||||||||||||||||||||||||||
| (Dollar amounts in thousands, unaudited) | |||||||||||||||||||||||||||||||
| Nonperforming loans (1) | $ | 3,692 | $ | 4,670 | $ | 4,728 | $ | 4,859 | $ | 6,806 | |||||||||||||||||||||
| Other real estate owned | 6,792 | 6,792 | 6,992 | 6,992 | 7,090 | ||||||||||||||||||||||||||
| Nonperforming assets | $ | 10,484 | $ | 11,462 | $ | 11,720 | $ | 11,851 | $ | 13,896 | |||||||||||||||||||||
| Allowance for loan losses | $ | 14,532 | $ | 14,550 | $ | 14,492 | $ | 14,342 | $ | 14,234 | |||||||||||||||||||||
| Allowance for loan losses/total loans | 1.46 | % | 1.49 | % | 1.48 | % | 1.46 | % | 1.41 | % | |||||||||||||||||||||
| Net charge-offs (recoveries): | |||||||||||||||||||||||||||||||
| Quarter-to-date | $ | 18 | $ | (58 | ) | $ | (150 | ) | $ | (308 | ) | $ | (34 | ) | |||||||||||||||||
| Year-to-date | (190 | ) | (208 | ) | (150 | ) | (183 | ) | 125 | ||||||||||||||||||||||
| Net charge-offs (recoveries) to average loans, annualized: | |||||||||||||||||||||||||||||||
| Quarter-to-date | 0.01 | % | -0.02 | % | -0.06 | % | -0.12 | % | -0.01 | % | |||||||||||||||||||||
| Year-to-date | -0.02 | % | -0.04 | % | -0.06 | % | -0.02 | % | 0.02 | % | |||||||||||||||||||||
| Nonperforming loans/total loans | 0.37 | % | 0.48 | % | 0.48 | % | 0.49 | % | 0.67 | % | |||||||||||||||||||||
| Allowance for loan losses/nonperforming loans | 393.61 | % | 311.56 | % | 306.51 | % | 295.16 | % | 209.14 | % | |||||||||||||||||||||
| Nonperforming assets/total assets | 0.78 | % | 0.89 | % | 0.89 | % | 0.89 | % | 1.02 | % | |||||||||||||||||||||
| (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) | September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||||||||||||
| 2022 | 2022 | 2022 | 2021 | 2021 | |||||||||||||||||||||||||||
| Stockholders' Equity | $ | 122,855 | $ | 128,220 | $ | 137,644 | $ | 145,335 | $ | 146,055 | |||||||||||||||||||||
| Less Goodwill and other intangibles | 16,242 | 16,320 | 16,397 | 16,474 | 16,555 | ||||||||||||||||||||||||||
| Tangible Common Equity | $ | 106,613 | $ | 111,900 | $ | 121,247 | $ | 128,861 | $ | 129,500 | |||||||||||||||||||||
| Shares outstanding | 5,767,803 | 5,810,351 | 5,873,565 | 5,888,737 | 6,054,083 | ||||||||||||||||||||||||||
| Tangible book value per share | $ | 18.48 | $ | 19.26 | $ | 20.64 | $ | 21.88 | $ | 21.39 | |||||||||||||||||||||
| Reconciliation of Average Equity to Return on Average Tangible Common Equity | |||||||||||||||||||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||
| 2022 | 2022 | 2022 | 2021 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
| Average Stockholders' Equity | $ | 130,263 | $ | 133,377 | $ | 144,630 | $ | 145,716 | $ | 148,048 | $ | 136,090 | $ | 146,611 | |||||||||||||||||
| Less Average Goodwill and other intangibles | 16,280 | 16,357 | 16,435 | 16,513 | 16,594 | 16,357 | 16,674 | ||||||||||||||||||||||||
| Average Tangible Common Equity | $ | 113,983 | $ | 117,020 | $ | 128,195 | $ | 129,203 | $ | 131,454 | $ | 119,733 | $ | 129,937 | |||||||||||||||||
| Net income | $ | 4,249 | $ | 4,089 | $ | 3,833 | $ | 4,837 | $ | 5,204 | $ | 12,171 | $ | 13,796 | |||||||||||||||||
| Return on average tangible common equity (annualized) | 14.79 | % | 14.02 | % | 12.13 | % | 14.85 | % | 15.71 | % | 13.59 | % | 14.20 | % | |||||||||||||||||
| Reconciliation of Pre-Tax Pre-Provision Income (PTPP) | |||||||||||||||||||||||||||||||
| For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||
| 2022 | 2022 | 2022 | 2021 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
| Net income | $ | 4,249 | $ | 4,089 | $ | 3,833 | $ | 4,837 | $ | 5,204 | $ | 12,171 | $ | 13,796 | |||||||||||||||||
| Add Income Taxes | 1,010 | 787 | 772 | 1,027 | 1,174 | 2,569 | 3,038 | ||||||||||||||||||||||||
| Add Provision for loan losses | - | - | - | (200 | ) | - | - | 900 | |||||||||||||||||||||||
| PTPP | $ | 5,259 | $ | 4,876 | $ | 4,605 | $ | 5,664 | $ | 6,378 | $ | 14,740 | $ | 17,734 | |||||||||||||||||
| MIDDLEFIELD BANC CORP. | |||||||||||||||||||||||||||||||
| Average Balance Sheets | |||||||||||||||||||||||||||||||
| (Dollar amounts in thousands, unaudited) | |||||||||||||||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||||||||||
| 2022 | 2021 | ||||||||||||||||||||||||||||||
| Average | Average | Average | Average | ||||||||||||||||||||||||||||
| Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost | ||||||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||||||||||
| Loans receivable (3) | $ | 987,689 | $ | 11,892 | 4.78 | % | $ | 1,027,935 | $ | 12,258 | 4.74 | % | |||||||||||||||||||
| Investment securities (3) | 172,316 | 1,431 | 3.90 | % | 154,718 | 1,134 | 3.37 | % | |||||||||||||||||||||||
| Interest-earning deposits with other banks (4) | 46,938 | 244 | 2.06 | % | 105,910 | 55 | 0.21 | % | |||||||||||||||||||||||
| Total interest-earning assets | 1,206,943 | 13,567 | 4.55 | % | 1,288,563 | 13,447 | 4.20 | % | |||||||||||||||||||||||
| Noninterest-earning assets | 73,753 | 82,952 | |||||||||||||||||||||||||||||
| Total assets | $ | 1,280,696 | $ | 1,371,515 | |||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 162,878 | $ | 91 | 0.22 | % | $ | 225,264 | $ | 67 | 0.12 | % | |||||||||||||||||||
| Money market deposits | 155,095 | 180 | 0.46 | % | 182,831 | 214 | 0.46 | % | |||||||||||||||||||||||
| Savings deposits | 249,898 | 119 | 0.19 | % | 253,960 | 38 | 0.06 | % | |||||||||||||||||||||||
| Certificates of deposit | 174,091 | 422 | 0.96 | % | 218,323 | 596 | 1.08 | % | |||||||||||||||||||||||
| Short-term borrowings | 8,554 | 44 | 2.04 | % | - | - | 0.00 | % | |||||||||||||||||||||||
| Other borrowings | 12,530 | 112 | 3.55 | % | 12,999 | 68 | 2.08 | % | |||||||||||||||||||||||
| Total interest-bearing liabilities | 763,046 | 968 | 0.50 | % | 893,377 | 983 | 0.44 | % | |||||||||||||||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||||||||||||||
| Noninterest-bearing demand deposits | 382,351 | 323,726 | |||||||||||||||||||||||||||||
| Other liabilities | 5,036 | 6,364 | |||||||||||||||||||||||||||||
| Stockholders' equity | 130,263 | 148,048 | |||||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,280,696 | $ | 1,371,515 | |||||||||||||||||||||||||||
| Net interest income | $ | 12,599 | $ | 12,464 | |||||||||||||||||||||||||||
| Interest rate spread (1) | 4.05 | % | 3.76 | % | |||||||||||||||||||||||||||
| Net interest margin (2) | 4.23 | % | 3.90 | % | |||||||||||||||||||||||||||
| Ratio of average interest-earning assets to | |||||||||||||||||||||||||||||||
| average interest-bearing liabilities | 158.17 | % | 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 $277 and $195 for the three months ended September 30, 2022 and 2021, respectively | |||||||||||||||||||||||||||||||
| (4) Includes dividends received on restricted stock. | |||||||||||||||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||||||||||||||
| September 30, | June 30, | ||||||||||||||||||||||||||||||
| 2022 | 2022 | ||||||||||||||||||||||||||||||
| Average | Average | Average | Average | ||||||||||||||||||||||||||||
| Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost | ||||||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||||||||||
| Loans receivable (3) | $ | 987,689 | $ | 11,892 | 4.78 | % | $ | 970,820 | $ | 11,268 | 4.66 | % | |||||||||||||||||||
| Investment securities (3) | 172,316 | 1,431 | 3.90 | % | 176,138 | 1,397 | 3.76 | % | |||||||||||||||||||||||
| Interest-earning deposits with other banks (4) | 46,938 | 244 | 2.06 | % | 79,924 | 153 | 0.77 | % | |||||||||||||||||||||||
| Total interest-earning assets | 1,206,943 | 13,567 | 4.55 | % | 1,226,882 | 12,818 | 4.28 | % | |||||||||||||||||||||||
| Noninterest-earning assets | 73,753 | 89,555 | |||||||||||||||||||||||||||||
| Total assets | $ | 1,280,696 | $ | 1,316,437 | |||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 162,878 | $ | 91 | 0.22 | % | $ | 159,779 | $ | 59 | 0.15 | % | |||||||||||||||||||
| Money market deposits | 155,095 | 180 | 0.46 | % | 185,711 | 228 | 0.49 | % | |||||||||||||||||||||||
| Savings deposits | 249,898 | 119 | 0.19 | % | 260,226 | 40 | 0.06 | % | |||||||||||||||||||||||
| Certificates of deposit | 174,091 | 422 | 0.96 | % | 184,748 | 382 | 0.83 | % | |||||||||||||||||||||||
| Short-term borrowings | 8,554 | 44 | 2.04 | % | - | - | 0.00 | % | |||||||||||||||||||||||
| Other borrowings | 12,530 | 112 | 3.55 | % | 12,945 | 81 | 2.51 | % | |||||||||||||||||||||||
| Total interest-bearing liabilities | 763,046 | 968 | 0.50 | % | 803,409 | 790 | 0.39 | % | |||||||||||||||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||||||||||||||
| Noninterest-bearing demand deposits | 382,351 | 375,013 | |||||||||||||||||||||||||||||
| Other liabilities | 5,036 | 4,638 | |||||||||||||||||||||||||||||
| Stockholders' equity | 130,263 | 133,377 | |||||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,280,696 | $ | 1,316,437 | |||||||||||||||||||||||||||
| Net interest income | $ | 12,599 | $ | 12,028 | |||||||||||||||||||||||||||
| Interest rate spread (1) | 4.05 | % | 3.89 | % | |||||||||||||||||||||||||||
| Net interest margin (2) | 4.23 | % | 4.02 | % | |||||||||||||||||||||||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | 158.17 | % | 152.71 | % | |||||||||||||||||||||||||||
| (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 $277 and $271 for the three months ended September 30, 2022, and June 30, 2022, respectively. | |||||||||||||||||||||||||||||||
| (4) Includes dividends received on restricted stock. | |||||||||||||||||||||||||||||||
| For the Nine Months Ended | |||||||||||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||||||||||
| 2022 | 2021 | ||||||||||||||||||||||||||||||
| Average | Average | Average | Average | ||||||||||||||||||||||||||||
| Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost | ||||||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||||||||||
| Loans receivable (3) | $ | 980,787 | $ | 34,145 | 4.66 | % | $ | 1,070,058 | $ | 36,310 | 4.54 | % | |||||||||||||||||||
| Investment securities (3) | 173,094 | 4,055 | 3.69 | % | 135,522 | 3,074 | 3.51 | % | |||||||||||||||||||||||
| Interest-earning deposits with other banks (4) | 72,851 | 448 | 0.82 | % | 94,955 | 141 | 0.20 | % | |||||||||||||||||||||||
| Total interest-earning assets | 1,226,732 | 38,648 | 4.30 | % | 1,300,535 | 39,525 | 4.12 | % | |||||||||||||||||||||||
| Noninterest-earning assets | 82,733 | 74,883 | |||||||||||||||||||||||||||||
| Total assets | $ | 1,309,465 | $ | 1,375,418 | |||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 164,337 | $ | 210 | 0.17 | % | $ | 211,797 | $ | 209 | 0.13 | % | |||||||||||||||||||
| Money market deposits | 175,024 | 620 | 0.47 | % | 187,945 | 655 | 0.47 | % | |||||||||||||||||||||||
| Savings deposits | 256,762 | 197 | 0.10 | % | 254,574 | 123 | 0.06 | % | |||||||||||||||||||||||
| Certificates of deposit | 184,165 | 1,220 | 0.89 | % | 240,582 | 2,143 | 1.19 | % | |||||||||||||||||||||||
| Short-term borrowings | 2,851 | 44 | 2.06 | % | 113 | - | 0.00 | % | |||||||||||||||||||||||
| Other borrowings | 12,806 | 262 | 2.74 | % | 13,440 | 214 | 2.13 | % | |||||||||||||||||||||||
| Total interest-bearing liabilities | 795,945 | 2,553 | 0.43 | % | 908,451 | 3,344 | 0.49 | % | |||||||||||||||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||||||||||||||
| Noninterest-bearing demand deposits | 372,343 | 314,172 | |||||||||||||||||||||||||||||
| Other liabilities | 5,087 | 6,184 | |||||||||||||||||||||||||||||
| Stockholders' equity | 136,090 | 146,611 | |||||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,309,465 | $ | 1,375,418 | |||||||||||||||||||||||||||
| Net interest income | $ | 36,095 | $ | 36,181 | |||||||||||||||||||||||||||
| Interest rate spread (1) | 3.87 | % | 3.63 | % | |||||||||||||||||||||||||||
| Net interest margin (2) | 4.02 | % | 3.78 | % | |||||||||||||||||||||||||||
| Ratio of average interest-earning assets to | |||||||||||||||||||||||||||||||
| average interest-bearing liabilities | 154.12 | % | 143.16 | % | |||||||||||||||||||||||||||
| (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 $768 and $542 for the nine months ended September 30, 2022 and 2021, respectively. | |||||||||||||||||||||||||||||||
| (4) Includes dividends received on restricted stock. | |||||||||||||||||||||||||||||||
| Quarterly Calculations | |||||||||||||||||||||||||||||||
| Average shares outstanding - basic | 5,792,773 | 5,851,422 | 5,879,025 | 5,951,838 | 6,136,648 | ||||||||||||||||||||||||||
| Average shares outstanding -diluted | 5,805,799 | 5,860,098 | 5,889,836 | 5,975,333 | 6,157,181 | ||||||||||||||||||||||||||
| Period ending shares outstanding | 5,767,803 | 5,810,351 | 5,873,565 | 5,888,737 | 6,054,083 | ||||||||||||||||||||||||||
| Stock price at end of period | $ | 27.10 | $ | 25.20 | $ | 24.82 | $ | 24.82 | $ | 23.83 | |||||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||||||||||||||
| 2022 | 2022 | 2022 | 2021 | 2021 | |||||||||||||||||||||||||||
| Average Loans | 987,689 | 970,820 | 983,853 | 999,229 | 1,027,935 | ||||||||||||||||||||||||||
| Average Assets | 1,280,696 | 1,316,437 | 1,332,039 | 1,358,843 | 1,371,515 | ||||||||||||||||||||||||||
| Goodwill | 15,071 | 15,071 | 15,071 | 15,071 | 15,071 | ||||||||||||||||||||||||||
| Average Assets less goodwill | 1,265,625 | 1,301,366 | 1,316,968 | 1,343,772 | 1,356,444 | ||||||||||||||||||||||||||
| Average Equity | 130,263 | 133,377 | 144,630 | 145,716 | 148,048 | ||||||||||||||||||||||||||
| Average Goodwill | 15,071 | 15,071 | 15,071 | 15,071 | 15,071 | ||||||||||||||||||||||||||
| Average Core deposit intangible | 1,209 | 1,286 | 1,364 | 1,442 | 1,523 | ||||||||||||||||||||||||||
| Average MSR Reserves | |||||||||||||||||||||||||||||||
| Average Tangible equity | 113,983 | 117,020 | 128,195 | 129,203 | 131,454 | ||||||||||||||||||||||||||
| Annualized Net Income | 16,857 | 16,401 | 15,545 | 19,190 | 20,646 | ||||||||||||||||||||||||||
| Net Interest Income (TE) | 12,876 | 12,297 | 11,691 | 12,170 | 12,690 | ||||||||||||||||||||||||||
| Non Interest Income | 1,546 | 1,383 | 1,403 | 1,535 | 1,821 | ||||||||||||||||||||||||||
| Total | 14,422 | 13,680 | 13,094 | 13,705 | 14,511 | ||||||||||||||||||||||||||
| Non Interest Expense | 8,886 | 8,535 | 8,266 | 7,831 | 7,907 | ||||||||||||||||||||||||||
| amort of intangibles | 78 | 77 | 77 | 80 | 81 | ||||||||||||||||||||||||||
| Non Interest Expense for Efficiency | 8,808 | 8,458 | 8,189 | 7,751 | 7,826 | ||||||||||||||||||||||||||
| Net Interest Income | 12,599 | 12,028 | 11,468 | 11,960 | 12,464 | ||||||||||||||||||||||||||
| Tax free income | 277 | 269 | 223 | 210 | 195 | ||||||||||||||||||||||||||
| Net Interest Income (TE) | 12,876 | 12,297 | 11,691 | 12,170 | 12,659 | ||||||||||||||||||||||||||
| Equity period end | 122,855 | 128,220 | 137,644 | 145,335 | 146,055 | ||||||||||||||||||||||||||
| Goodwill | 15,071 | 15,071 | 15,071 | 15,071 | 15,071 | ||||||||||||||||||||||||||
| Core deposit intangible | 1,171 | 1,249 | 1,326 | 1,403 | 1,484 | ||||||||||||||||||||||||||
| MSR Reserves | |||||||||||||||||||||||||||||||
| Tangible equity | 106,613 | 111,900 | 121,247 | 128,861 | 129,500 | ||||||||||||||||||||||||||
| Tangible book value per share | 18.48 | 19.26 | 20.64 | 21.88 | 21.39 | ||||||||||||||||||||||||||
| Period ending shares outstanding | 5,767,803 | 5,810,351 | 5,873,565 | 5,888,737 | 6,054,083 | ||||||||||||||||||||||||||
| Equity to assets at period end | 9.09 | % | 9.91 | % | 10.40 | % | 10.92 | % | 10.69 | % | |||||||||||||||||||||
| Assets at period end | 1,351,011 | 1,293,377 | 1,323,298 | 1,331,006 | 1,365,865 | ||||||||||||||||||||||||||
| LLR Beginning of year | 14,342 | 14,342 | 14,342 | 13,459 | 13,459 | ||||||||||||||||||||||||||
| YTD Allocation | - | - | - | 700 | 900 | ||||||||||||||||||||||||||
| 14,342 | 14,342 | 14,342 | 14,159 | 14,359 | |||||||||||||||||||||||||||
| Current LLR balance | 14,532 | 14,550 | 14,492 | 14,342 | 14,234 | ||||||||||||||||||||||||||
| Net (recoveries) chargeoffs YTD | (190 | ) | (208 | ) | (150 | ) | (183 | ) | 125 | ||||||||||||||||||||||
| LLR Beginning of Quarter | 14,550 | 14,492 | 14,342 | 14,234 | 14,200 | ||||||||||||||||||||||||||
| QTD Allocation | - | - | - | (200 | ) | - | |||||||||||||||||||||||||
| 14,550 | 14,492 | 14,342 | 14,034 | 14,200 | |||||||||||||||||||||||||||
| Current LLR balance | 14,532 | 14,550 | 14,492 | 14,342 | 14,234 | ||||||||||||||||||||||||||
| Net (recoveries) chargeoffs QTD | 18 | (58 | ) | (150 | ) | (308 | ) | (34 | ) | ||||||||||||||||||||||
| Total Loans | 995,195 | 977,997 | 977,720 | 981,691 | 1,010,282 | ||||||||||||||||||||||||||
| OREO | 6,792 | 6,792 | 6,992 | 6,992 | 7,090 | ||||||||||||||||||||||||||
| Loans and OREO | 1,001,987 | 984,789 | 984,712 | 988,683 | 1,017,372 | ||||||||||||||||||||||||||
| Non performing assets | 10,484 | 11,462 | 11,720 | 11,851 | 13,896 | ||||||||||||||||||||||||||
| 1.05 | % | 1.16 | % | 1.19 | % | 1.20 | % | 1.37 | % | ||||||||||||||||||||||
| Tier 1 capital | 139,693 | 137,491 | 135,921 | 130,652 | 133,890 | ||||||||||||||||||||||||||
| Average assets | 1,280,696 | 1,316,437 | 1,332,039 | 1,358,843 | 1,371,515 | ||||||||||||||||||||||||||
| 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 |
