• Middlefield Banc Corp. Reports 2023 First Quarter Financial Results

    Source: Nasdaq GlobeNewswire / 24 Apr 2023 15:05:08   America/Chicago

    MIDDLEFIELD, Ohio, April 24, 2023 (GLOBE NEWSWIRE) -- Middlefield Banc Corp. (NASDAQ: MBCN) today reported financial results for the 2023 first quarter ended March 31, 2023.

    2023 First Quarter Financial Highlights Include (on a year-over-year basis unless noted):

    • Net income increased 27.7% to a quarterly record of $4.9 million
    • Earnings were $0.60 per diluted share compared to $0.65 per diluted share, reflecting a 38.4% increase in the average diluted shares outstanding related to the Liberty Bancshares, Inc. merger
    • Adopted CECL accounting standards, which resulted in an after-tax retained earnings adjustment of $4.4 million
    • Pre-tax, pre-provision net income increased 38.8% to $6.4 million
    • Net interest margin improved by 46 basis points to 4.26%, compared to 3.80%
    • Total loans were $1.38 billion, compared to $1.35 billion at December 31, 2022
    • Loan growth funded by deposit growth and robust liquidity
    • Total deposits were $1.43 billion, compared to $1.40 billion at December 31, 2022
    • Uninsured deposits to total assets of approximately 19% at March 31, 2023
    • Return on average assets was 1.16%, compared to 1.17%
    • Return on average equity was 10.19%, compared to 10.75%
    • Return on average tangible common equity(1) was 12.77%, compared to 12.13%
    • Strong asset quality with nonperforming assets to total assets of 0.73%, compared to 0.89%
    • Allowance for credit losses was 1.46% of total loans, compared to 1.48%
    • Equity to assets increased to 11.30%, from 10.40%

    “Middlefield’s first-quarter results and record quarterly net income demonstrate our strong balance sheet, robust asset quality, and diverse core deposit base, as well as the benefits and added scale of the Liberty Bancshares, Inc. merger. Despite macro-level concerns related to the health of the banking system, higher interest rates, and a slowing economy, we remained focused on successfully integrating the Liberty Bancshares merger and serving our customers across our Central, Western, and Northeast Ohio communities. I am encouraged by the deposit, loan, and earnings growth we achieved over the past three months, all of which is a testament to the experience of our management team and the dedication of our team members,” stated James R. Heslop, II, Chief Executive Officer.

    “We expect higher rates and competition for deposits will continue to increase our cost of funds in the coming quarters, but we believe our compelling net interest margin and larger loan portfolio will support strong levels of interest income throughout the year. I am pleased to report that we achieved the highest quarterly net interest margin in over 20 years and the fourth consecutive quarter above 4%. As the year progresses, we remain focused on growth opportunities across our expanded Ohio markets, adding talented bankers to our platform, and maintaining strong asset quality,” concluded Mr. Heslop.

    Income Statement
    Net interest income for the 2023 first quarter was $16.5 million, compared to $11.5 million for the 2022 first quarter. The net interest margin for the 2023 first quarter was 4.26%, compared to 3.80% for the same period of 2022. For the 2023 first quarter, noninterest income increased 19.6% to $1.7 million from $1.4 million for the same period of 2022.

    Noninterest expense was $11.8 million for the 2023 first quarter compared to $8.3 million for the 2022 first quarter. During the first quarter of 2023, the Company incurred $245,000 of additional operating expenses associated with the Liberty Bancshares, Inc.

    Pre-tax income during last year’s first quarter benefited from $640,000 of accelerated net fees associated with the Paycheck Protection Program (“PPP”).

    Net income for the 2023 first quarter was a quarterly record of $4.9 million, or $0.60 per diluted share, compared to $3.8 million, or $0.65 per diluted share, for the same period last year.

    Pre-tax, pre-provision net income was a quarterly record of $6.4 million, an increase of 38.8% from $4.6 million last year.

    Balance Sheet
    Total assets at March 31, 2023, increased 30.6% to $1.73 billion, compared to $1.32 billion at March 31, 2022. Net loans at March 31, 2023, increased 41.5% to $1.36 billion, compared to $963.2 million at March 31, 2022. Total assets increased 2.4% from December 31, 2022.

    Total deposits at March 31, 2023, were $1.43 billion, compared to $1.17 billion at March 31, 2022. The 22.1% deposit increase was primarily due to the Liberty Bancshares, Inc. merger. Total deposits at March 31, 2023, increased 1.7% from December 31, 2022.

    Donald L. Stacy, Chief Financial Officer, stated, “We ended the quarter with a net loan-to-deposit ratio of 95.6%, $66.7 million in cash and cash equivalents, and $169.6 million in investment securities. In addition, our unrealized losses on all securities at the end of the month were a modest 9.0% of total capital. Considering our strong capital levels, robust liquidity, and diverse loan and deposit portfolios, along with our maximum borrowing capacity of $560 million at the Federal Home Loan Bank, we decided not to use the Federal Reserve’s Bank Term Funding Program. During the first quarter, we repurchased 164,221 shares at an average of $27.44 per share and have 293,910 shares remaining under our February 2023 repurchase program.”

    Middlefield's CRE portfolio included the following categories at March 31, 2023:

    CRE Category Balance
    (in thousands)    		 Percent of CRE
    Portfolio    		 Percent of Loan
    Portfolio
    Office Space  105,726 16.3% 7.7%
    Shopping Plazas $84,995 13.1% 6.1%
    Multi-Family $63,892 9.8% 4.6%
    Self-Storage $56,347 8.7% 4.1%
    Senior Living $42,589 6.5% 3.1%
    Hospitality $34,869 5.4% 2.5%
    Other $261,449 40.2% 18.9%
    Total CRE $649,867 100.0% 47.0%

    Stockholders’ Equity and Dividends
    At March 31, 2023, stockholders’ equity was $195.2 million compared to $137.6 million at March 31, 2022. The 41.8% year-over-year increase in stockholders’ equity is primarily due to the Liberty Bancshares, Inc. merger, partially offset by an increase in the unrealized loss on the available-for-sale investment portfolio and the Company’s stock repurchase program. On a per-share basis, shareholders’ equity at March 31, 2023, was $24.13 compared to $23.43, an increase of 3.0% over the same period last year.

    At March 31, 2023, tangible stockholders’ equity(1) was $156.0 million for the 2023 first quarter, compared to $121.2 million at March 31, 2022. On a per-share basis, tangible stockholders’ equity(1) was $19.29 at March 31, 2023, compared to $20.64 at March 31, 2022.

    For the 2023 first quarter, cash dividends declared per share increased 17.6% to $0.20 per share totaling $1.6 million, compared to $0.17 per share or $1.0 million, for the first quarter last year.

    At March 31, 2023, the Company had an equity-to-assets leverage ratio of 11.30%, compared to 10.40% at March 31, 2022.

    Asset Quality
    The Company recorded a provision for loan losses of $507,000 for the 2023 first quarter versus no provision for loan losses for the same period last year.

    On January 1, 2023, Middlefield adopted ASU 2016-13 - Measurement of Credit Losses on Financial Instruments and implemented the current expected credit losses (“CECL”) accounting standards. Upon adoption, the reserve for credit losses on loans and leases increased by $5.3 million, the reserve for credit losses for unfunded commitments increased by $622,000. This resulted in an after-tax retained earnings adjustment of $4.4 million. During the quarter ended March 31, 2023, the Corporation recorded CECL related charges of $507,000, including a provision for credit losses on loans and leases of $334,000 and a reserve for unfunded commitments of $173,000.

    Net recoveries were $8,000, or 0.00% of average loans, annualized, during the 2023 first quarter, compared to net recoveries of $150,000, or 0.06% of average loans, annualized, at March 31, 2022.

    Nonperforming assets at March 31, 2023, were $12.7 million, compared to $11.7 million at March 31, 2022. Nonperforming loans at March 31, 2023, increased to $6.9 million, from $4.7 million at March 31, 2022 primarily due to the additional loans from the Liberty Bancshares, Inc. merger. The allowance for credit losses at March 31, 2023, stood at $20.2 million, or 1.46% of total loans, compared to $14.5 million, or 1.48% of total loans at March 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 $1.73 billion at March 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

    (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) changes in the securities markets; or (8) risk factors mentioned in the reports and registration statements Middlefield Banc Corp. files with the Securities and Exchange Commission. Middlefield Banc Corp. undertakes no obligation to release revisions to these forward-looking statements or to reflect events or circumstances after the date of this press release.

    MIDDLEFIELD BANC CORP.              
    Consolidated Selected Financial Highlights              
    (Dollar amounts in thousands, unaudited)            
      March 31,  December 31,  September 30,  June 30,  March 31,
    Balance Sheets (period end) 2023   2022   2022   2022   2022 
    ASSETS              
    Cash and due from banks$                 59,609  $                 51,404  $               119,777  $                 60,114  $                 78,804 
    Federal funds sold                     7,048                      2,405                      8,800                    19,039                    29,474 
    Cash and cash equivalents                  66,657                    53,809                  128,577                    79,153                  108,278 
    Equity securities, at fair value                       777                         915                         972                         779                         851 
    Investment securities available for sale, at fair value                169,605                  164,967                  162,064                  171,958                  175,216 
    Loans held for sale                       104                             -                             -                             -                             9 
    Loans:              
    Commercial real estate:              
    Owner occupied                185,661                  191,748                  120,912                  120,771                  113,590 
    Non-owner occupied                400,314                  380,580                  285,419                  288,334                  293,745 
    Multifamily                  63,892                    58,251                    38,063                    29,152                    29,385 
    Residential real estate                306,179                  296,308                  247,612                  246,453                  244,747 
    Commercial and industrial                195,024                  195,602                  146,987                  137,398                  131,683 
    Home equity lines of credit                126,555                  128,065                  114,344                  111,730                  106,300 
    Construction and other                  97,406                    94,199                    33,748                    35,988                    50,152 
    Consumer installment                    7,816                      8,119                      8,110                      8,171                      8,118 
    Total loans             1,382,847               1,352,872                  995,195                  977,997                  977,720 
    Less allowance for credit losses                  20,162                    14,438                    14,532                    14,550                    14,492 
    Net loans             1,362,685               1,338,434                  980,663                  963,447                  963,228 
    Premises and equipment, net                  21,775                    21,961                    16,215                    17,030                    17,142 
    Goodwill                  31,735                    31,735                    15,071                    15,071                    15,071 
    Core deposit intangibles                    7,436                      7,701                      1,171                      1,249                      1,326 
    Bank-owned life insurance                  34,015                    33,811                    17,382                    17,274                    17,166 
    Other real estate owned                    5,792                      5,821                      6,792                      6,792                      6,992 
    Accrued interest receivable and other assets                  27,258                    28,528                    22,104                    20,624                    18,019 
    TOTAL ASSETS$            1,727,839  $            1,687,682  $            1,351,011  $            1,293,377  $            1,323,298 
                   
      March 31,  December 31,  September 30,  June 30,  March 31,
      2023   2022   2022   2022   2022 
    LIABILITIES              
    Deposits:              
    Noninterest-bearing demand$               474,977  $               503,907  $               383,675  $               379,872  $               361,251 
    Interest-bearing demand                196,086                  164,677                  160,112                  154,788                  162,010 
    Money market                221,723                  187,498                  162,052                  185,494                  187,807 
    Savings                287,859                  307,917                  247,466                  252,179                  264,784 
    Time                244,962                  238,020                  177,182                  174,833                  191,320 
    Total deposits             1,425,607               1,402,019               1,130,487               1,147,166               1,167,172 
                   
    Short-term borrowings                  85,000                    65,000                    80,000                             -                             - 
    Other borrowings                  12,010                    12,059                    12,107                    12,910                    12,975 
    Accrued interest payable and other liabilities                  10,057                    10,913                      5,562                      5,081                      5,507 
    TOTAL LIABILITIES             1,532,674               1,489,991               1,228,156               1,165,157               1,185,654 
    STOCKHOLDERS' EQUITY              
    Common stock, no par value; 10,000,000 shares authorized, 9,924,245              
    shares issued, 8,088,793 shares outstanding as of March 31, 2023                161,248                  161,029                    87,640                    87,562                    87,562 
    Retained earnings                  93,024                    94,154                    93,166                    89,900                    86,804 
    Accumulated other comprehensive loss                (19,253)                 (22,144)                 (25,080)                 (17,591)                   (6,674)
    Treasury stock, at cost; 1,835,452 shares as of March 31, 2023                (39,854)                 (35,348)                 (32,871)                 (31,651)                 (30,048)
    TOTAL STOCKHOLDERS' EQUITY                195,165                  197,691                  122,855                  128,220                  137,644 
                   
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$            1,727,839  $            1,687,682  $            1,351,011  $            1,293,377  $            1,323,298 
                   
    MIDDLEFIELD BANC CORP.              
    Consolidated Selected Financial Highlights              
    (Dollar amounts in thousands, unaudited)            
      For the Three Months Ended
      March 31,  December 31,  September 30,  June 30,  March 31,
    Statements of Income 2023   2022   2022   2022   2022 
                   
    INTEREST AND DIVIDEND INCOME              
    Interest and fees on loans$                 18,275  $                 14,368  $                 11,892  $                 11,268  $                 10,985 
    Interest-earning deposits in other institutions                       250                         240                         134                           74                           24 
    Federal funds sold                       253                         119                           51                           46                             3 
    Investment securities:              
    Taxable interest                       458                         477                         449                         442                         443 
    Tax-exempt interest                       980                         986                         982                         955                         784 
    Dividends on stock                         88                           68                           59                           33                           24 
    Total interest and dividend income                  20,304                    16,258                    13,567                    12,818                    12,263 
    INTEREST EXPENSE              
    Deposits                    2,990                      1,771                         812                         709                         726 
    Short-term borrowings                       653                         263                           44                           -                             -   
    Other borrowings                       155                         142                         112                           81                           69 
    Total interest expense                    3,798                      2,176                         968                         790                         795 
                   
    NET INTEREST INCOME                  16,506                    14,082                    12,599                    12,028                    11,468 
                   
    Provision for credit losses                       507                           -                             -                             -                             -   
                   
    NET INTEREST INCOME AFTER PROVISION              
    FOR LOAN LOSSES                  15,999                    14,082                    12,599                    12,028                    11,468 
    NONINTEREST INCOME              
    Service charges on deposit accounts                       987                         976                      1,004                         956                         914 
    (Loss) gain on equity securities                     (138)                        (77)                        (57)                        (72)                          33 
    Gain on other real estate owned 2   -   -   -   - 
    Earnings on bank-owned life insurance                       200                         137                         108                         108                         106 
    Gains (losses) on sale of loans                         23                           (4)                            7                           18                             3 
    Revenue from investment services                       186                         147                         233                         153                         141 
    Gross rental income                       102                         951                           -                             -                             -   
    Other income                       318                         284                         251                         220                         206 
    Total noninterest income                    1,678                      2,414                      1,546                      1,383                      1,403 
                   
    NONINTEREST EXPENSE              
    Salaries and employee benefits                    5,852                      4,886                      4,491                      3,785                      4,386 
    Occupancy expense                       696                         487                         458                         583                         505 
    Equipment expense                       317                         252                         233                         274                         315 
    Data processing costs                    1,070                      1,050                         985                         822                         844 
    Ohio state franchise tax                       385                         279                         293                         292                         293 
    Federal deposit insurance expense                       120                         105                           84                           90                           50 
    Professional fees                       538                         382                         280                         383                         455 
    Other real estate owned writedowns                         -                        1,000                           -                           200                           -   
    Gain on other real estate owned                         (2)                          -                             -                             -                             -   
    Advertising expense                       486                         308                         268                         229                         228 
    Software amortization expense                         26                           28                           27                           40                           48 
    Core deposit intangible amortization                       265                         140                           78                           77                           77 
    Gross other real estate owned expenses                       132                         692                             1                             6                             8 
    Merger-related costs                       245                      1,413                         390                         579                           -   
    Other expense                    1,662                      1,321                      1,298                      1,175                      1,057 
    Total noninterest expense                  11,792                    12,343                      8,886                      8,535                      8,266 
                   
    Income before income taxes                    5,885                      4,153                      5,259                      4,876                      4,605 
    Income taxes                       989                         651                      1,010                         787                         772 
                   
    NET INCOME$                   4,896  $                   3,502  $                   4,249  $                   4,089  $                   3,833 
                   
    PTPP (1)$                   6,392  $                   4,153  $                   5,259  $                   4,876  $                   4,605 
                   
    (1)  The pre-tax pre-provision (PTPP) is the income before income taxes before provision for credit 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
      March 31,  December 31,  September 30,  June 30,  March 31,
      2023   2022   2022   2022   2022 
    Per common share data              
    Net income per common share - basic$0.60  $0.53   $ 0.73   $ 0.70   $ 0.65 
    Net income per common share - diluted$0.60  $0.53   $ 0.73   $ 0.70   $ 0.65 
    Dividends declared per share $ 0.20  $0.30   $ 0.17   $ 0.17   $ 0.17 
    Book value per share (period end)$24.13  $23.98   $ 21.30   $ 22.07   $ 23.43 
    Tangible book value per share (period end) (2) (3)$19.29  $19.19   $ 18.48   $ 19.26   $ 20.64 
    Dividends declared $                    1,605  $                   2,514   $                       983   $                       993   $                    1,000 
    Dividend yield 2.89%  4.34%  2.49%  2.71%  2.78%
    Dividend payout ratio 32.78%  71.79%  23.13%  24.28%  26.09%
    Average shares outstanding - basic 8,138,771   6,593,616   5,792,773   5,851,422   5,879,025 
    Average shares outstanding - diluted 8,152,629   6,610,907   5,805,799   5,860,098   5,889,836 
    Period ending shares outstanding 8,088,793   8,245,235   5,767,803   5,810,351   5,873,565 
                   
    Selected ratios              
    Return on average assets 1.16%  0.97%  1.32%  1.25%  1.17%
    Return on average equity 10.19%  9.35%  12.94%  12.30%  10.75%
    Return on average tangible common equity (2) (4) 12.77%  11.13%  14.79%  14.02%  12.13%
    Efficiency (1) 62.44%  72.75%  61.07%  61.83%  62.54%
    Equity to assets at period end 11.30%  11.71%  9.09%  9.91%  10.40%
    Noninterest expense to average assets 0.69%  0.86%  0.69%  0.65%  0.62%
                   
    (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
      March 31,  December 31,  September 30,  June 30,  March 31,
    Yields 2023   2022   2022   2022   2022 
    Interest-earning assets:              
    Loans receivable (2) 5.45%  5.11%  4.78%  4.66%  4.53%
    Investment securities (2) 4.11%  3.83%  3.90%  3.76%  3.41%
    Interest-earning deposits with other banks 3.46%  3.42%  2.06%  0.77%  0.23%
    Total interest-earning assets 5.22%  4.88%  4.55%  4.28%  4.06%
    Deposits:              
    Interest-bearing demand deposits 0.83%  0.83%  0.22%  0.15%  0.14%
    Money market deposits 1.52%  1.00%  0.46%  0.49%  0.47%
    Savings deposits 1.03%  0.49%  0.19%  0.06%  0.06%
    Certificates of deposit 1.71%  1.30%  0.96%  0.83%  0.87%
    Total interest-bearing deposits 1.28%  0.87%  0.43%  0.36%  0.37%
    Non-Deposit Funding:              
    Borrowings 4.78%  4.25%  2.94%  2.51%  2.16%
    Total interest-bearing liabilities 1.52%  1.02%  0.50%  0.39%  0.39%
    Cost of deposits 0.84%  0.57%  0.29%  0.24%  0.25%
    Cost of funds 1.02%  0.68%  0.34%  0.27%  0.27%
    Net interest margin (1) 4.26%  4.23%  4.23%  4.02%  3.80%
                   
    (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
      March 31,  December 31,  September 30,  June 30,  March 31,
    Asset quality data 2023   2022   2022   2022   2022 
    (Dollar amounts in thousands, unaudited)              
    Nonperforming loans (1)$                   6,882  $                   2,111  $                   3,692  $                   4,670  $                   4,728 
    Other real estate owned                    5,792                      5,821                      6,792                      6,792                      6,992 
    Nonperforming assets$                 12,674  $                   7,932  $                 10,484  $                 11,462  $                 11,720 
                   
    Allowance for credit losses$20,162  $14,438  $14,532  $14,550  $14,492 
    Allowance for credit losses/total loans 1.46%  1.07%  1.46%  1.49%  1.48%
    Net (recoveries) charge-offs:              
    Quarter-to-date$                        (8) $                        94  $                        18  $(58) $(150)
    Year-to-date (8)  (96)  (190)  (208)  (150)
    Net (recoveries) charge-offs to average loans, annualized:              
    Quarter-to-date 0.00%  0.03%  0.01%  -0.02%  -0.06%
    Year-to-date 0.00%  -0.01%  -0.02%  -0.04%  -0.06%
                   
    Nonperforming loans/total loans 0.50%  0.16%  0.37%  0.48%  0.48%
    Allowance for credit losses/nonperforming loans 292.97%  683.94%  393.61%  311.56%  306.51%
    Nonperforming assets/total assets 0.73%  0.47%  0.78%  0.89%  0.89%
    (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) March 31,  December 31,  September 30,  June 30,  March 31,
      2023   2022   2022   2022   2022 
                   
    Stockholders' Equity$               195,165  $               197,691  $               122,855  $               128,220  $               137,644 
    Less Goodwill and other intangibles                  39,171                    39,436                    16,242                    16,320                    16,397 
    Tangible Common Equity$               155,994  $               158,255  $               106,613  $               111,900  $               121,247 
                   
    Shares outstanding 8,088,793   8,245,235   5,767,803   5,810,351   5,873,565 
    Tangible book value per share$                   19.29  $                   19.19  $                   18.48  $                   19.26  $                   20.64 
                   
    Reconciliation of Average Equity to Return on Average Tangible Common Equity              
    For the Three Months Ended
                   
      March 31,  December 31,  September 30,  June 30,  March 31,
      2023   2022   2022   2022   2022 
                   
    Average Stockholders' Equity $               194,814  $               148,616  $               130,263  $               133,377  $               144,630 
    Less Average Goodwill and other intangibles                  39,300                    23,731                    16,280                    16,357                    16,435 
    Average Tangible Common Equity$               155,514  $               124,885  $               113,983  $               117,020  $               128,195 
                   
    Net income$                   4,896  $                   3,502  $                   4,249  $                   4,089  $                   3,833 
    Return on average tangible common equity (annualized) 12.77%  11.13%  14.79%  14.02%  12.13%
                   
    Reconciliation of Pre-Tax Pre-Provision Income (PTPP)              
    For the Three Months Ended
                   
      March 31,  December 31,  September 30,  June 30,  March 31,
      2023   2022   2022   2022   2022 
                   
    Net income$                   4,896  $                   3,502  $                   4,249  $                   4,089  $                   3,833 
    Add Income Taxes                       989                         651                      1,010                         787                         772 
    Add Provision for credit losses                       507                             -                             -                             -                             - 
    PTPP$                   6,392  $                   4,153  $                   5,259  $                   4,876  $                   4,605 


    MIDDLEFIELD BANC CORP.           
    Average Balance Sheets           
    (Dollar amounts in thousands, unaudited)           
     For the Three Months Ended
     March 31, March 31,
      2023   2022 
     Average   Average Average   Average
     Balance Interest  Yield/Cost Balance Interest  Yield/Cost
    Interest-earning assets:           
    Loans receivable (3)$          1,360,866 $               18,275 5.45% $             983,853 $               10,985 4.53%
    Investment securities (3)                167,674  1,438 4.11%                 170,829  1,227 3.41%
    Interest-earning deposits with other banks (4)                  69,308  591 3.46%                   91,690  51 0.23%
    Total interest-earning assets             1,597,848                   20,304 5.22%              1,246,372                   12,263 4.06%
    Noninterest-earning assets                115,515                       85,667    
    Total assets$          1,713,363     $          1,332,039    
    Interest-bearing liabilities:           
    Interest-bearing demand deposits$             177,935 $                    364 0.83% $             170,353 $                      60 0.14%
    Money market deposits                208,408                        783 1.52%                 184,265                        212 0.47%
    Savings deposits                315,049                        804 1.03%                 260,162                          38 0.06%
    Certificates of deposit                246,151                     1,039 1.71%                 193,657                        416 0.87%
    Short-term borrowings                  56,459                        653 4.69%                            -                            - 0.00%
    Other borrowings                  12,038                        155 5.22%                   12,943                          69 2.16%
    Total interest-bearing liabilities             1,016,040                     3,798 1.52%                 821,380                        795 0.39%
    Noninterest-bearing liabilities:           
    Noninterest-bearing demand deposits                491,649                     359,656    
    Other liabilities                  10,860                         6,373    
    Stockholders' equity                194,814                     144,630    
    Total liabilities and stockholders' equity$          1,713,363     $          1,332,039    
    Net interest income  $               16,506     $               11,468  
    Interest rate spread (1)    3.70%     3.67%
    Net interest margin (2)    4.26%     3.80%
    Ratio of average interest-earning assets to           
      average interest-bearing liabilities    157.26%     151.74%
                
    (1) Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.    
    (2) Net interest margin represents net interest income as a percentage of average interest-earning assets.        
    (3) Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $278 and  $223 for the three months ended March 31, 2023 and 2022, respectively.  
    (4) Includes dividends received on restricted stock.             
                
     For the Three Months Ended
     March 31, December 31,
      2023   2022 
     Average   Average Average   Average
     Balance Interest  Yield/Cost Balance Interest  Yield/Cost
    Interest-earning assets:           
    Loans receivable (3)$          1,360,866 $               18,275 5.45% $          1,117,221 $               14,368 5.11%
    Investment securities (3)                167,674                     1,438 4.11%                 178,772  1,463 3.83%
    Interest-earning deposits with other banks (4)                  69,308                        591 3.46%                   49,569  427 3.42%
    Total interest-earning assets             1,597,848                   20,304 5.22%              1,345,562                   16,258 4.88%
    Noninterest-earning assets                115,515                       89,740    
    Total assets$          1,713,363     $          1,435,302    
    Interest-bearing liabilities:           
    Interest-bearing demand deposits$             177,935 $                    364 0.83% $             165,267 $                    344 0.83%
    Money market deposits                208,408                        783 1.52%                 172,437                        435 1.00%
    Savings deposits                315,049                        804 1.03%                 266,613                        330 0.49%
    Certificates of deposit                246,151                     1,039 1.71%                 201,972                        662 1.30%
    Short-term borrowings                  56,459                        653 4.69%                   25,750                        263 4.05%
    Other borrowings                  12,038                        155 5.22%                   12,086                        142 4.66%
    Total interest-bearing liabilities             1,016,040                     3,798 1.52%                 844,125                     2,176 1.02%
    Noninterest-bearing liabilities:           
    Noninterest-bearing demand deposits                491,649                     428,155    
    Other liabilities                  10,860                       14,406    
    Stockholders' equity                194,814                     148,616    
    Total liabilities and stockholders' equity$          1,713,363     $          1,435,302    
    Net interest income  $               16,506     $               14,082  
    Interest rate spread (1)    3.70%     3.86%
    Net interest margin (2)    4.26%     4.23%
    Ratio of average interest-earning assets to           
    average interest-bearing liabilities    157.26%     159.40%
                
    (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 $278 and $278 for the three months ended March 31, 2023, and December 31, 2022, respectively.
    (4) Includes dividends received on restricted stock.             

     

    Company Contact:Investor and Media Contact:
    James R. Heslop, II
    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

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