Middlefield Banc Corp. Reports 2024 First Quarter Financial Results

Source: Nasdaq GlobeNewswire / 30 Apr 2024 06:30:53 America/Chicago

MIDDLEFIELD, Ohio, April 30, 2024 (GLOBE NEWSWIRE) -- Middlefield Banc Corp. (NASDAQ: MBCN) today reported financial results for the three months ended March 31, 2024.

2024 First Quarter Financial Highlights (on a year-over-year basis unless noted):

Net income was $4.2 million, compared to $4.9 million for the quarter ended March 31, 2023, and $3.5 million for the quarter ended December 31, 2023
Earnings were $0.51 per diluted share, compared to $0.60 per diluted share for the quarter ended March 31, 2023, and $0.44 per diluted share for the quarter ended December 31, 2023
Net interest income after the provision for credit losses was $15.1 million, compared to $16.0 million
Noninterest income increased 6.9% to $1.8 million
Total loans increased 7.8% to a record $1.49 billion
Total deposits were $1.45 billion, compared to $1.43 billion
Return on average assets annualized was 0.92%, compared to 0.78% for the quarter ended December 31, 2023
Return on average equity annualized was 8.16%, compared to 7.13% for the quarter ended December 31, 2023
Return on average tangible common equity⁽¹⁾ was 10.30%, compared to 9.11% for the quarter ended December 31, 2023
Excellent asset quality with nonperforming assets to total assets of 0.60%, compared to 0.73%
Allowance for credit losses was 1.41% of total loans, compared to 1.46%
Equity to assets remained strong at 11.32%, compared to 11.30%
Book value increased 5.6% to $25.48 per share

^{(1) See non-GAAP reconciliation under the section “GAAP to Non-GAAP Reconciliations”}

Ronald L. Zimmerly, Jr., President and Chief Executive Officer, stated, “2024 is off to a solid start. Over the past three months, our pre-tax, pre-provision income⁽¹⁾ stabilized, reflecting positive loan growth, strong asset quality, higher noninterest income, and controlled operating expenses. During this period, our ROAA, ROAE, and ROATCE increased due to improved profitability. In addition, we ended the quarter with record total loans as our expanded Commercial, Business, and Consumer Banking teams capitalized on favorable demand trends across our Northeast, Central, and Western Ohio markets.”

“While we expect uncertainty about FOMC monetary policies and their impact on national economic conditions in 2024 to continue, economic activity and employment within our Ohio markets are stable. In addition, our asset quality remains excellent, and nonperforming assets at the end of the first quarter improved slightly from the fourth quarter and were down 14.5% from last year’s first quarter. Our first quarter performance is encouraging and reflects our teams' hard work and contributions across our three Ohio markets. As we look to the remainder of the year, we are focused on pursuing our multi-year strategic growth goals: increasing revenue opportunities, improving our customer experience, and advancing operational performance to create lasting value for our shareholders,” concluded Mr. Zimmerly.

Income Statement
Net interest income for the 2024 first quarter decreased 9.3% to $15.0 million, compared to $16.5 million for the same period last year. The net interest margin for the 2024 first quarter was 3.53%, compared to 4.19% last year.

For the 2024 first quarter, noninterest income increased 6.9% to $1.8 million, compared to $1.7 million for the same period of 2023.

Noninterest expense for the 2024 first quarter was $12.0 million, compared to $11.8 million for the 2023 first quarter.

Net income for the 2024 first quarter ended March 31, 2024, was $4.2 million, or $0.51 per diluted share, compared to $4.9 million, or $0.60 per diluted share, for the same period last year.

For the 2024 first quarter, pre-tax, pre-provision net income was $4.8 million, compared to $6.4 million last year. (See non-GAAP reconciliation under the section “GAAP to Non-GAAP Reconciliations”).

Balance Sheet
Total assets at March 31, 2024, increased 5.1% to $1.82 billion, compared to $1.73 billion at March 31, 2023. Total loans at March 31, 2024, were $1.49 billion, compared to $1.38 billion at March 31, 2023. The 7.8% year-over-year increase in total loans was primarily due to higher commercial and industrial, residential real estate, commercial real estate, and construction and other loans.

Total liabilities at March 31, 2024, increased 5.1% to $1.61 billion, compared to $1.53 billion at March 31, 2023. Total deposits at March 31, 2024, were $1.45 billion, compared to $1.43 billion at March 31, 2023. The 1.5% year-over-year increase in deposits was primarily due to growth in money market, interest-bearing demand, and time deposits, partially offset by declines in noninterest-bearing demand and savings accounts. Noninterest-bearing demand deposits were 27.0% of total deposits at March 31, 2024, compared to 33.3% at March 31, 2023. At March 31, 2024, the Company had brokered deposits of $90.4 million, compared to $5.0 million at March 31, 2023.

The investment securities available for sale portfolio was $167.9 million at March 31, 2024, compared with $169.6 million at March 31, 2023.

Michael Ranttila, Chief Financial Officer, stated, “Asset quality improved on both a sequential and year-over-year basis, reflecting our conservative underwriting standards and balanced portfolio composition. Nonperforming loans at March 31, 2024, included one self-storage loan in the Southwest Ohio market totaling $3.6 million. We believe this issue is isolated to this borrower and does not indicate a trend in the market, our portfolio, or an issue in underwriting.”

Mr. Ranttila continued, “We also remain focused on identifying opportunities to improve our cost of funds, pay down higher cost capital, and grow core deposits to support loan demand. Over the past three months, total deposits increased 1.4%, while our Federal Home Loan Bank advances decreased by nearly 16.0%. With sufficient liquidity, stabilizing profitability, and excellent asset quality, I am pleased to report that during the first quarter, we repurchased 43,858 shares of our common stock at an average price of $24.00 per share, reflecting our long-standing commitment to return excess capital to shareholders.”

Middlefield's CRE portfolio included the following categories at March 31, 2024:

CRE Category	Balance (in thousands)		Percent of CRE Portfolio	Percent of Loan Portfolio
Multi-Family	$	81,691	12.4%	5.5%
Office Space	$	78,789	12.0%	5.3%
Shopping Plazas	$	73,250	11.1%	4.9%
Self-Storage	$	61,525	9.3%	4.1%
Hospitality	$	39,779	6.0%	2.7%
Senior Living	$	26,545	4.0%	1.8%
Other	$	297,500	45.2%	19.9%
Total CRE	$	659,079	100.0%	44.2%

Stockholders' Equity and Dividends
At March 31, 2024, stockholders' equity was $205.6 million compared to $195.2 million at March 31, 2023. The 5.3% year-over-year increase in stockholders' equity was primarily due to higher retained earnings and an improvement in the unrealized losses on the available-for-sale investment portfolio, partially offset by the Company's stock repurchase program. On a per-share basis, shareholders' equity at March 31, 2024, was $25.48 compared to $24.13 at March 31, 2023.

At March 31, 2024, tangible stockholders' equity⁽¹⁾ was $162.8 million, compared to $156.0 million at March 31, 2023. On a per-share basis, tangible stockholders' equity⁽¹⁾ was $20.18 at March 31, 2024, compared to $19.29 at March 31, 2023. ⁽¹⁾See non-GAAP reconciliation under the section “GAAP to Non-GAAP Reconciliations”.

For the 2024 first quarter, the Company declared cash dividends of $0.20 per share, totaling $1.6 million.

At March 31, 2024, the Company's equity-to-assets ratio was 11.32%, compared to 11.30% at March 31, 2023.

Asset Quality
For the 2024 first quarter, the Company recorded a recovery of credit losses of $100,000 versus a provision for credit losses of $500,000 for the same period last year.

Net recoveries were $68,000, or 0.02% of average loans, annualized, during the first quarter of 2024, compared to net recoveries of $8,000, or 0.00% of average loans, annualized, at March 31, 2023.

Nonperforming loans at March 31, 2024, were $10.8 million, compared to $6.9 million at March 31, 2023. Nonperforming assets at March 31, 2024, were $10.8 million, compared to $12.7 million at March 31, 2023. The allowance for credit losses at March 31, 2024, stood at $21.1 million, or 1.41% of total loans, compared to $20.2 million, or 1.46% of total loans at March 31, 2023. The decrease in the allowance for credit losses as a percentage of total loans was mainly due to changes in projected loss drivers, prepayment assumptions, and curtailment expectations over the reasonable and supportable forecast period.

About Middlefield Banc Corp.
Middlefield Banc Corp., headquartered in Middlefield, Ohio, is the Bank holding Company of The Middlefield Banking Company, with total assets of $1.82 billion at March 31, 2024. The Bank operates 21 full-service banking centers and an LPL Financial® brokerage office serving Ada, Beachwood, Bellefontaine, Chardon, Cortland, Dublin, Garrettsville, Kenton, Mantua, Marysville, Middlefield, Newbury, Orwell, Plain City, Powell, Solon, Sunbury, Twinsburg, and Westerville. The Bank also operates a Loan Production Office in Mentor, Ohio.

Additional information is available at: www.middlefieldbank.bank

NON-GAAP FINANCIAL MEASURES
This press release includes disclosure of Middlefield Banc Corp.'s tangible book value per share, return on average tangible equity, and pre-tax, pre-provision for loan losses income, which are financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts 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 following Consolidated Financial Highlights tables 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 several 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)		2024			2023			2023			2023			2023
ASSETS
Cash and due from banks	$	44,816		$	56,397		$	56,228		$	49,422		$	59,609
Federal funds sold		1,438			4,439			9,274			9,654			7,048
Cash and cash equivalents		46,254			60,836			65,502			59,076			66,657
Investment securities available for sale, at fair value		167,890			170,779			159,414			167,209			169,605
Other investments		907			955			958			711			777
Loans held for sale		-			-			632			171			104
Loans:
Commercial real estate:
Owner occupied		178,543			183,545			185,593			187,919			185,661
Non-owner occupied		398,845			401,580			382,676			385,846			400,314
Multifamily		81,691			82,506			82,578			58,579			63,892
Residential real estate		331,480			328,854			321,331			312,196			306,179
Commercial and industrial		227,433			221,508			214,334			209,349			195,024
Home equity lines of credit		129,287			127,818			127,494			126,894			126,555
Construction and other		135,716			125,105			127,106			118,851			97,406
Consumer installment		7,131			7,214			7,481			9,801			7,816
Total loans		1,490,126			1,478,130			1,448,593			1,409,435			1,382,847
Less allowance for credit losses		21,069			21,693			20,986			20,591			20,162
Net loans		1,469,057			1,456,437			1,427,607			1,388,844			1,362,685
Premises and equipment, net		21,035			21,339			21,708			21,629			21,775
Goodwill		36,356			36,356			36,197			36,197			31,735
Core deposit intangibles		6,384			6,642			6,906			7,171			7,436
Bank-owned life insurance		34,575			34,349			34,153			34,235			34,015
Other real estate owned		-			-			5,792			5,792			5,792
Accrued interest receivable and other assets		34,210			35,190			34,551			30,472			27,258
TOTAL ASSETS	$	1,816,668		$	1,822,883		$	1,793,420		$	1,751,507		$	1,727,839

	March 31,			December 31,			September 30,			June 30,			March 31,
		2024			2023			2023			2023			2023
LIABILITIES
Deposits:
Noninterest-bearing demand	$	390,185		$	401,384		$	424,055		$	441,102		$	474,977
Interest-bearing demand		209,015			205,582			243,973			229,633			196,086
Money market		318,823			274,682			275,766			241,537			221,723
Savings		196,721			210,639			216,453			231,508			287,859
Time		332,165			334,315			296,732			287,861			244,962
Total deposits		1,446,909			1,426,602			1,456,979			1,431,641			1,425,607
Federal Home Loan Bank advances		137,000			163,000			118,000			100,000			85,000
Other borrowings		11,812			11,862			11,912			11,961			12,010
Accrued interest payable and other liabilities		15,372			15,738			12,780			10,678			10,057
TOTAL LIABILITIES		1,611,093			1,617,202			1,599,671			1,554,280			1,532,674
STOCKHOLDERS' EQUITY
Common stock, no par value; 25,000,000 shares authorized, 9,946,454 shares issued, 8,067,144 shares outstanding as of March 31, 2024		161,823			161,388			161,312			161,211			161,248
Retained earnings		102,791			100,237			98,717			96,500			93,024
Accumulated other comprehensive loss		(18,130	)		(16,090	)		(26,426	)		(20,630	)		(19,253	)
Treasury stock, at cost; 1,879,310 shares as of March 31, 2024		(40,909	)		(39,854	)		(39,854	)		(39,854	)		(39,854	)
TOTAL STOCKHOLDERS' EQUITY		205,575			205,681			193,749			197,227			195,165

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,816,668		$	1,822,883		$	1,793,420		$	1,751,507		$	1,727,839


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		2024			2023			2023			2023			2023

INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$	22,395		$	22,027		$	20,899		$	20,762		$	18,275
Interest-earning deposits in other institutions		437			370			300			369			250
Federal funds sold		152			94			266			158			253
Investment securities:
Taxable interest		467			479			477			479			458
Tax-exempt interest		972			976			980			978			980
Dividends on stock		189			144			148			91			88
Total interest and dividend income		24,612			24,090			23,070			22,837			20,304
INTEREST EXPENSE
Deposits		7,466			6,522			5,632			3,851			2,990
Short-term borrowings		1,993			2,013			1,258			1,462			653
Other borrowings		184			179			213			170			155
Total interest expense		9,643			8,714			7,103			5,483			3,798

NET INTEREST INCOME		14,969			15,376			15,967			17,354			16,506

(Recovery of) Provision for credit losses		(136	)		554			1,127			814			507

NET INTEREST INCOME AFTER (RECOVERY OF) PROVISION FOR CREDIT LOSSES		15,105			14,822			14,840			16,540			15,999
NONINTEREST INCOME
Service charges on deposit accounts		909			997			954			940			987
(Loss) gain on equity securities		(52	)		(4	)		48			(67	)		(138	)
(Loss) gain on other real estate owned		-			(172	)		-			-			2
Earnings on bank-owned life insurance		227			196			207			220			200
Gain on sale of loans		10			23			45			6			23
Revenue from investment services		204			193			190			174			186
Gross rental income		261			132			110			77			102
Other income		237			237			263			242			318
Total noninterest income		1,796			1,602			1,817			1,592			1,680

NONINTEREST EXPENSE
Salaries and employee benefits		6,333			6,646			5,994			6,019			5,852
Occupancy expense		552			512			699			659			696
Equipment expense		240			273			297			354			317
Data processing costs		1,249			1,348			1,209			1,137			1,070
Ohio state franchise tax		397			397			398			398			385
Federal deposit insurance expense		251			285			207			249			120
Professional fees		558			660			545			550			538
Advertising expense		419			162			414			415			486
Software amortization expense		22			22			24			23			26
Core deposit intangible amortization		258			264			265			265			265
Gross other real estate owned expenses		99			120			195			63			132
Merger-related costs		-			-			22			206			245
Other expense		1,587			1,483			1,849			1,716			1,661
Total noninterest expense		11,965			12,172			12,118			12,054			11,793

Income before income taxes		4,936			4,252			4,539			6,078			5,886
Income taxes		769			709			703			986			989

NET INCOME	$	4,167		$	3,543		$	3,836		$	5,092		$	4,897

PTPP ⁽¹⁾	$	4,800		$	4,806		$	5,666		$	6,892		$	6,393

⁽¹⁾See section “GAAP to Non-GAAP Reconciliations” for the reconciliation of GAAP performance measures to non-GAAP measures.


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

	For the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
		2024			2023			2023			2023			2023
Per common share data
Net income per common share - basic	$	0.52		$	0.44		$	0.47		$	0.63		$	0.60
Net income per common share - diluted	$	0.51		$	0.44		$	0.47		$	0.63		$	0.60
Dividends declared per share	$	0.20		$	0.25		$	0.20		$	0.20		$	0.20
Book value per share (period end)	$	25.48		$	25.41		$	23.94		$	24.38		$	24.13
Tangible book value per share (period end) ^{(1) (2)}	$	20.18		$	20.10		$	18.62		$	19.02		$	19.29
Dividends declared	$	1,613		$	2,023		$	1,619		$	1,616		$	1,605
Dividend yield		3.37	%		3.06	%		3.12	%		2.99	%		2.89	%
Dividend payout ratio		38.71	%		57.10	%		42.21	%		31.74	%		32.78	%
Average shares outstanding - basic		8,091,203			8,093,478			8,092,494			8,088,793			8,138,771
Average shares outstanding - diluted		8,097,219			8,116,261			8,101,306			8,101,984			8,152,629
Period ending shares outstanding		8,067,144			8,095,252			8,092,576			8,088,793			8,088,793

Selected ratios
Return on average assets (Annualized)		0.92	%		0.78	%		0.86	%		1.17	%		1.16	%
Return on average equity (Annualized)		8.16	%		7.13	%		7.73	%		10.41	%		10.19	%
Return on average tangible common equity ^{(1) (3)}		10.30	%		9.11	%		9.91	%		13.12	%		12.77	%
Efficiency ⁽⁴⁾		68.68	%		68.99	%		65.65	%		61.27	%		62.44	%
Equity to assets at period end		11.32	%		11.28	%		10.80	%		11.26	%		11.30	%
Noninterest expense to average assets		0.66	%		0.68	%		0.68	%		0.69	%		0.69	%

⁽¹⁾See section “GAAP to Non-GAAP Reconciliations” for the reconciliation of GAAP performance measures to non-GAAP measures.
⁽²⁾Calculated by dividing tangible common equity by shares outstanding.
⁽³⁾Calculated by dividing annualized net income for each period by average tangible common equity.
⁽⁴⁾The efficiency ratio is calculated by dividing noninterest expense less amortization of intangibles by the sum of net interest income on a fully taxable equivalent basis plus noninterest income.


MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(Unaudited)

	For the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
Yields		2024			2023			2023			2023			2023
Interest-earning assets:
Loans receivable ⁽¹⁾		6.11	%		6.01	%		5.82	%		5.96	%		5.45	%
Investment securities ⁽¹⁾⁽²⁾		3.51	%		3.52	%		3.51	%		3.54	%		3.55	%
Interest-earning deposits with other banks		4.88	%		3.71	%		4.13	%		3.98	%		3.46	%
Total interest-earning assets		5.77	%		5.64	%		5.49	%		5.60	%		5.14	%
Deposits:
Interest-bearing demand deposits		1.86	%		1.67	%		1.51	%		1.11	%		0.83	%
Money market deposits		3.81	%		3.58	%		2.94	%		2.21	%		1.52	%
Savings deposits		0.58	%		0.59	%		0.58	%		0.73	%		1.03	%
Certificates of deposit		4.06	%		3.68	%		3.27	%		2.35	%		1.71	%
Total interest-bearing deposits		2.88	%		2.56	%		2.16	%		1.60	%		1.28	%
Non-Deposit Funding:
Borrowings		5.61	%		5.57	%		5.66	%		5.26	%		4.78	%
Total interest-bearing liabilities		3.23	%		2.96	%		2.48	%		2.02	%		1.52	%
Cost of deposits		2.08	%		1.81	%		1.53	%		1.09	%		0.84	%
Cost of funds		2.42	%		2.18	%		1.80	%		1.43	%		1.02	%
Net interest margin ⁽³⁾		3.53	%		3.63	%		3.82	%		4.27	%		4.19	%

⁽¹⁾Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were determined using an effective tax rate of 21%.
⁽²⁾Yield is calculated on the basis of amortized cost.
⁽³⁾Net interest margin represents net interest income as a percentage of average interest-earning assets.

	For the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
Asset quality data		2024			2023			2023			2023			2023
(Dollar amounts in thousands, unaudited)
Nonperforming loans	$	10,831		$	10,877		$	7,717		$	7,116		$	6,882
Other real estate owned		-			-			5,792			5,792			5,792
Nonperforming assets	$	10,831		$	10,877		$	13,509		$	12,908		$	12,674

Allowance for credit losses	$	21,069		$	21,693		$	20,986		$	20,591		$	20,162
Allowance for credit losses/total loans		1.41	%		1.47	%		1.45	%		1.46	%		1.46	%
Net charge-offs (recoveries):
Quarter-to-date	$	(68	)	$	(117	)	$	(16	)	$	111		$	(8	)
Year-to-date		(68	)		(31	)		87			103			(8	)
Net charge-offs (recoveries) to average loans, annualized:
Quarter-to-date		(0.02	%)		(0.03	%)		0.00	%		0.03	%		0.00	%
Year-to-date		(0.02	%)		0.00	%		0.01	%		0.01	%		0.00	%

Nonperforming loans/total loans		0.73	%		0.74	%		0.53	%		0.50	%		0.50	%
Allowance for credit losses/nonperforming loans		194.52	%		199.44	%		271.95	%		289.36	%		292.97	%
Nonperforming assets/total assets		0.60	%		0.60	%		0.75	%		0.74	%		0.73	%


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,
		2024			2023			2023			2023			2023

Stockholders' equity	$	205,575		$	205,681		$	193,749		$	197,227		$	195,165
Less goodwill and other intangibles		42,740			42,998			43,103			43,368			39,171
Tangible common equity	$	162,835		$	162,683		$	150,646		$	153,859		$	155,994

Shares outstanding		8,067,144			8,095,252			8,092,576			8,088,793			8,088,793
Tangible book value per share	$	20.18		$	20.10		$	18.62		$	19.02		$	19.29


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,
		2024			2023			2023			2023			2023

Average stockholders' equity	$	205,342		$	197,208		$	196,795		$	196,183		$	194,814
Less average goodwill and other intangibles		42,654			42,972			43,232			40,522			39,300
Average tangible common equity	$	162,688		$	154,236		$	153,563		$	155,661		$	155,514

Net income	$	4,167		$	3,543		$	3,836		$	5,092		$	4,897
Return on average tangible common equity (annualized)		10.30	%		9.11	%		9.91	%		13.12	%		12.77	%


Reconciliation of Pre-Tax Pre-Provision Income (PTPP)	For the Three Months Ended

	March 31,			December 31,			September 30,			June 30,			March 31,
		2024			2023			2023			2023			2023

Net income	$	4,167		$	3,543		$	3,836		$	5,092		$	4,897
Add income taxes		769			709			703			986			989
Add (recovery of) provision for credit losses		(136	)		554			1,127			814			507
PTPP	$	4,800		$	4,806		$	5,666		$	6,892		$	6,393


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

	For the Three Months Ended
	March 31,									March 31,
		2024									2023
	Average						Average			Average						Average
	Balance			Interest			Yield/Cost			Balance			Interest			Yield/Cost
Interest-earning assets:
Loans receivable ⁽¹⁾	$	1,476,543		$	22,395			6.11	%	$	1,360,866		$	18,275		5.45	%
Investment securities ⁽¹⁾⁽²⁾		194,704			1,439			3.51	%		194,031			1,438		3.55	%
Interest-earning deposits with other banks ⁽³⁾		64,139			778			4.88	%		69,308			591		3.46	%
Total interest-earning assets		1,735,386			24,612			5.77	%		1,624,205			20,304		5.14	%
Noninterest-earning assets		87,298									89,158
Total assets	$	1,822,684								$	1,713,363
Interest-bearing liabilities:
Interest-bearing demand deposits	$	211,009		$	978			1.86	%	$	177,935		$	364		0.83	%
Money market deposits		298,479			2,827			3.81	%		208,408			783		1.52	%
Savings deposits		201,080			290			0.58	%		315,049			804		1.03	%
Certificates of deposit		333,871			3,371			4.06	%		246,151			1,039		1.71	%
Short-term borrowings		144,357			1,993			5.55	%		56,459			653		4.69	%
Other borrowings		11,840			184			6.25	%		12,038			155		5.22	%
Total interest-bearing liabilities		1,200,636			9,643			3.23	%		1,016,040			3,798		1.52	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		400,209									491,649
Other liabilities		16,497									10,860
Stockholders' equity		205,342									194,814
Total liabilities and stockholders' equity	$	1,822,684								$	1,713,363
Net interest income				$	14,969								$	16,506
Interest rate spread ⁽⁴⁾								2.54	%							3.62	%
Net interest margin ⁽⁵⁾								3.53	%							4.19	%
Ratio of average interest-earning assets to average interest-bearing liabilities								144.54	%							159.86	%

⁽¹⁾Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $281 and $278 for the three months ended March 31, 2024 and 2023, respectively.
⁽²⁾Yield is calculated on the basis of amortized cost.
⁽³⁾Includes dividends received on restricted stock.
⁽⁴⁾Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.
⁽⁵⁾Net interest margin represents net interest income as a percentage of average interest-earning assets.

	For the Three Months Ended
	March 31,									December 31,
		2024									2023
	Average						Average			Average						Average
	Balance			Interest			Yield/Cost			Balance			Interest			Yield/Cost
Interest-earning assets:
Loans receivable ⁽¹⁾	$	1,476,543		$	22,395			6.11	%	$	1,454,688		$	22,027		6.01	%
Investment securities ⁽¹⁾⁽²⁾		194,704			1,439			3.51	%		193,289			1,455		3.52	%
Interest-earning deposits with other banks ⁽³⁾		64,139			778			4.88	%		64,989			608		3.71	%
Total interest-earning assets		1,735,386			24,612			5.77	%		1,712,966			24,090		5.64	%
Noninterest-earning assets		87,298									82,364
Total assets	$	1,822,684								$	1,795,330
Interest-bearing liabilities:
Interest-bearing demand deposits	$	211,009		$	978			1.86	%	$	222,517		$	935		1.67	%
Money market deposits		298,479			2,827			3.81	%		276,354			2,493		3.58	%
Savings deposits		201,080			290			0.58	%		211,997			317		0.59	%
Certificates of deposit		333,871			3,371			4.06	%		299,427			2,777		3.68	%
Short-term borrowings		144,357			1,993			5.55	%		144,344			2,013		5.53	%
Other borrowings		11,840			184			6.25	%		11,890			179		5.97	%
Total interest-bearing liabilities		1,200,636			9,643			3.23	%		1,166,529			8,714		2.96	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		400,209									422,151
Other liabilities		16,497									9,442
Stockholders' equity		205,342									197,208
Total liabilities and stockholders' equity	$	1,822,684								$	1,795,330
Net interest income				$	14,969								$	15,376
Interest rate spread ⁽⁴⁾								2.54	%							2.68	%
Net interest margin ⁽⁵⁾								3.53	%							3.63	%
Ratio of average interest-earning assets to average interest-bearing liabilities								144.54	%							146.84	%

⁽¹⁾Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $281 and $282 for the three months ended March 31, 2024 and December 31, 2023, respectively.
⁽²⁾Yield is calculated on the basis of amortized cost.
⁽³⁾Includes dividends received on restricted stock.
⁽⁴⁾Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.
^{(5 )}Net interest margin represents net interest income as a percentage of average interest-earning assets.

Company Contact:	Investor and Media Contact:
Ronald L. Zimmerly, Jr. President and Chief Executive Officer Middlefield Banc Corp. (419) 673-1217 rzimmerly@middlefieldbank.com	Andrew M. Berger Managing Director SM Berger & Company, Inc. (216) 464-6400 andrew@smberger.com

Middlefield Banc Corp. Reports 2024 First Quarter Financial Results

Set Language