MIDDLEFIELD, Ohio, April 21, 2022 (GLOBE NEWSWIRE) -- Middlefield Banc Corp. (NASDAQ: MBCN) today reported financial results for the 2022 first quarter ended March 31, 2022.
2022 First Quarter Financial Highlights Include (on a year-over-year basis unless noted) :
- Returned $1.8 million of capital to shareholders through dividends and the repurchase of 32,150 shares
- Net income was $3.8 million, or $0.65 per diluted share, compared to $4.2 million, or $0.65 per diluted share
- First-quarter pre-tax income benefited from $640,000 of accelerated net fees associated with the Paycheck Protection Program (“PPP”), compared to $800,000 in the 2021 first quarter
- Net interest margin improved by 7 basis points to 3.80%, compared to 3.73%
- Total loans were $977.7 million, compared to $981.7 million at December 31, 2021
- Total loans increased by $12.5 million or 5.2% annualized from December 31, 2021, without the impact of PPP loan forgiveness
- Return on average assets was 1.17%, compared to 1.22%
- Return on average equity was 10.75%, compared to 11.64%
- Return on average tangible common equity (1) was 12.13%, compared to 13.16%
- Strong asset quality with nonperforming loans to total loans of 0.48%, compared to 0.81%
- Allowance for loan losses was 1.48% of total loans, compared to 1.28%
“Over the past two years, we have focused on supporting our communities while enhancing our asset quality, increasing our allowance for bad debts, managing expenses, and returning excess capital to shareholders through our growing dividend and active share repurchase programs,” stated James R. Heslop, II, President and Chief Executive Officer. “I am proud of our progress and the strong platform we have created. As a result, I believe we are well-positioned to grow our Bank across our Northeast and Central Ohio markets and I am encouraged by the 1.3% increase in total loans from December 31, 2021, when adjusted for the impact of PPP loan forgiveness.”
Mr. Heslop continued, “With strong capital levels, $108.3 million in cash and cash equivalents, and $175.2 million in investments, we continue to allocate excess capital to our dividend and share repurchase programs. Over the last 12 months, we have repurchased 495,131 shares of our common stock at a total cost of $12.0 million. This includes 32,150 shares repurchased during the 2022 first quarter at an average price of $25.47 per share, or 123.40% of our tangible book value of $20.64 at March 31, 2022. We will continue to focus on returning capital to shareholders throughout 2022.”
“While uncertainty has increased across the global economic environment, economic activity within our local Northeast and Central Ohio markets remains compelling. We believe the value we provide our communities supports our growth objectives and we expect 2022 to be another good year for The Middlefield Banking Company,” concluded Mr. Heslop.
Income Statement
Net interest income for the 2022 first quarter was $11.5 million, compared to $11.9 million for the 2021 first quarter. The net interest margin for the 2022 first quarter was 3.80%, compared to 3.73% for the same period of 2021. For the 2022 first quarter, noninterest income decreased 36.7% to $1.4 million from $2.2 million for the same period of 2021. Noninterest expense was $8.3 million for both the 2022 and 2021 first quarters.
Balance Sheet
Total assets at March 31, 2022, decreased 4.7% to $1.32 billion, compared to $1.39 billion at March 31, 2021. Net loans at March 31, 2022, decreased 11.6% to $963.2 million, compared to $1.09 billion at March 31, 2021. Since 2020, Middlefield has helped customers receive $194.9 million of forgiveness payments under the terms of the Paycheck Protection Program, including processing $16.4 million of forgiveness payments during the first quarter of 2022. The balance of PPP loans outstanding at March 31, 2022, was $17.7 million.
Total deposits at March 31, 2022, were $1.17 billion, compared to $1.23 billion at March 31, 2021. The 4.8% decrease in deposits was primarily due to a decline in time-based and interest-bearing accounts, partially offset by increased noninterest-bearing and savings accounts. The investment portfolio was $175.2 million at March 31, 2022, compared with $123.2 million at March 31, 2021.
Donald L. Stacy, Chief Financial Officer, stated, “We continue to operate with one of the strongest balance sheets in our 120-year history, which provides us with significant flexibility to support our share repurchase programs and growth strategies. In addition, our asset quality is excellent, with nonperforming loans down 47.2% over the prior year, while our allowance for loan losses to nonperforming loans has increased from 157.65% at March 31, 2021, to 306.51% at March 31, 2022.”
Mr. Stacy continued, “I am pleased by the success we have had managing both our noninterest expense and cost of funds. During the first quarter, noninterest expense was flat compared to the same period last year. In addition, our cost of funds declined 14 basis points, helping produce a 7-basis point year-over-year improvement in our net interest margin. As a result, we are well-positioned to benefit from a rising interest rate environment, especially as the prime rate increases above 1.00%.”
Stockholders’ Equity and Dividends
At March 31, 2022, stockholders’ equity was $137.6 million compared to $144.7 million at March 31, 2021. The 4.9% year-over-year decline in stockholders’ equity was primarily due to an increase in the unrealized loss on the available-for-sale investment portfolio during the three-month period and the Company’s stock repurchase program. On a per-share basis, shareholders’ equity at March 31, 2022, was $23.43 compared to $22.80, an increase of 2.8%, over the same period last year.
At March 31, 2022, tangible stockholders’ equity (1) was $121.2 million for the 2022 first quarter, compared to $128.0 million at March 31, 2021. On a per-share basis, tangible stockholders’ equity (1) was $20.64 at March 31, 2022, compared to $20.17 at March 31, 2021, an increase of 2.3%.
For the 2022 first quarter, cash dividends declared per share increased 6.3% to $0.17 per share totaling $1.0 million, compared to $0.16 per share totaling $1.0 million, for the first quarter last year.
At March 31, 2022, the Company had an equity-to-assets leverage ratio of 10.40%, compared to 10.42% at March 31, 2021.
Asset Quality
There was no provision for loan losses for the 2022 first quarter versus a $700,000 provision for loan losses for the same period last year. The year-over-year decline in the provision for loan losses was partially due to strong asset quality and previous year’s prudent build in the Company’s allowance for loan losses associated with the potential economic impacts caused by the COVID-19 pandemic.
Net recoveries were $150,000, or 0.06% of average loans, annualized, during the 2022 first quarter, compared to net charge-offs of $37,000, or 0.01% of average loans, annualized, at March 31, 2021.
Nonperforming loans at March 31, 2022, were $4.7 million, compared to $9.0 million at March 31, 2021. Nonperforming assets at March 31, 2022, were $11.7 million, compared to $16.3 million at March 31, 2021. The allowance for loan losses at March 31, 2022, stood at $14.5 million, or 1.48% of total loans, compared to $14.1 million, or 1.28% of total loans at March 31, 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 $1.32 billion at March 31, 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) This press release includes disclosure of Middlefield Banc Corp.’s tangible book value per share, return on average tangible equity, and pre-tax, pre-provision for loan losses income, which are financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed by GAAP. Middlefield Banc Corp. believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Middlefield Banc Corp.’s marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. The reconciliations of non-GAAP financial measures are included in the tables following Consolidated Financial Highlights below.
This press release of Middlefield Banc Corp. and the reports Middlefield Banc Corp. files with the Securities and Exchange Commission often contain “forward-looking statements” relating to present or future trends or factors affecting the banking industry and, specifically, the financial operations, markets and products of Middlefield Banc Corp. These forward-looking statements involve certain risks and uncertainties. There are a number of important factors that could cause Middlefield Banc Corp.’s future results to differ materially from historical performance or projected performance. These factors include, but are not limited to: (1) a significant increase in competitive pressures among financial institutions; (2) changes in the interest rate environment that may reduce interest margins; (3) changes in prepayment speeds, charge-offs and loan loss provisions; (4) less favorable than expected general economic conditions; (5) legislative or regulatory changes that may adversely affect businesses in which Middlefield Banc Corp. is engaged; (6) technological issues which may adversely affect Middlefield Banc Corp.’s financial operations or customers; (7) the effect of the COVID-19 pandemic, including on our credit quality and business operations, as well as its impact on general economic and financial market conditions; (8) changes in the securities markets; or (9) risk factors mentioned in the reports and registration statements Middlefield Banc Corp. files with the Securities and Exchange Commission. Middlefield Banc Corp. undertakes no obligation to release revisions to these forward-looking statements or to reflect events or circumstances after the date of this press release.
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) | 2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Cash and due from banks | $ | 78,804 | $ | 97,172 | $ | 113,177 | $ | 82,435 | $ | 93,037 | ||||||||||||||||||
Federal funds sold | 29,474 | 22,322 | 19,174 | 10,034 | 7,436 | |||||||||||||||||||||||
Cash and cash equivalents | 108,278 | 119,494 | 132,351 | 92,469 | 100,473 | |||||||||||||||||||||||
Equity securities, at fair value | 851 | 818 | 833 | 730 | 690 | |||||||||||||||||||||||
Investment securities available for sale, at fair value | 175,216 | 170,199 | 163,057 | 150,850 | 123,218 | |||||||||||||||||||||||
Loans held for sale | 9 | 1,051 | 676 | 790 | 1,260 | |||||||||||||||||||||||
Loans: | ||||||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||
Owner occupied | 113,590 | 111,470 | 110,883 | 109,777 | 104,379 | |||||||||||||||||||||||
Non-owner occupied | 293,745 | 283,618 | 310,222 | 304,324 | 304,623 | |||||||||||||||||||||||
Multifamily | 29,385 | 31,189 | 30,762 | 34,926 | 39,015 | |||||||||||||||||||||||
Residential real estate | 244,747 | 240,089 | 232,020 | 228,102 | 228,052 | |||||||||||||||||||||||
Commercial and industrial | 131,683 | 148,812 | 163,052 | 200,558 | 242,651 | |||||||||||||||||||||||
Home equity lines of credit | 106,300 | 104,355 | 105,450 | 107,685 | 111,474 | |||||||||||||||||||||||
Construction and other | 50,152 | 54,148 | 49,378 | 62,229 | 64,960 | |||||||||||||||||||||||
Consumer installment | 8,118 | 8,010 | 8,515 | 8,694 | 9,046 | |||||||||||||||||||||||
Total loans | 977,720 | 981,691 | 1,010,282 | 1,056,295 | 1,104,200 | |||||||||||||||||||||||
Less allowance for loan and lease losses | 14,492 | 14,342 | 14,234 | 14,200 | 14,122 | |||||||||||||||||||||||
Net loans | 963,228 | 967,349 | 996,048 | 1,042,095 | 1,090,078 | |||||||||||||||||||||||
Premises and equipment, net | 17,142 | 17,272 | 17,507 | 17,680 | 18,002 | |||||||||||||||||||||||
Goodwill | 15,071 | 15,071 | 15,071 | 15,071 | 15,071 | |||||||||||||||||||||||
Core deposit intangibles | 1,326 | 1,403 | 1,484 | 1,564 | 1,644 | |||||||||||||||||||||||
Bank-owned life insurance | 17,166 | 17,060 | 16,954 | 16,846 | 16,740 | |||||||||||||||||||||||
Other real estate owned | 6,992 | 6,992 | 7,090 | 7,090 | 7,372 | |||||||||||||||||||||||
Accrued interest receivable and other assets | 18,019 | 14,297 | 14,794 | 15,033 | 13,545 | |||||||||||||||||||||||
TOTAL ASSETS | $ | 1,323,298 | $ | 1,331,006 | $ | 1,365,865 | $ | 1,360,218 | $ | 1,388,093 | ||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||
2022 | 2021 | 2021 | 2021 | 2021 | ||||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||
Noninterest-bearing demand | $ | 361,251 | $ | 334,171 | $ | 316,770 | $ | 326,665 | $ | 317,224 | ||||||||||||||||||
Interest-bearing demand | 162,010 | 196,308 | 237,576 | 207,725 | 215,684 | |||||||||||||||||||||||
Money market | 187,807 | 177,281 | 178,423 | 183,453 | 187,204 | |||||||||||||||||||||||
Savings | 264,784 | 260,125 | 256,114 | 252,171 | 259,973 | |||||||||||||||||||||||
Time | 191,320 | 198,725 | 211,674 | 225,271 | 245,342 | |||||||||||||||||||||||
Total deposits | 1,167,172 | 1,166,610 | 1,200,557 | 1,195,285 | 1,225,427 | |||||||||||||||||||||||
Other borrowings | 12,975 | 12,901 | 12,966 | 13,031 | 13,095 | |||||||||||||||||||||||
Accrued interest payable and other liabilities | 5,507 | 6,160 | 6,287 | 5,858 | 4,901 | |||||||||||||||||||||||
TOTAL LIABILITIES | 1,185,654 | 1,185,671 | 1,219,810 | 1,214,174 | 1,243,423 | |||||||||||||||||||||||
STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||||||
Common stock, no par value; 10,000,000 shares authorized, 7,347,526 | ||||||||||||||||||||||||||||
shares issued, 5,873,565 shares outstanding as of March 31, 2022 | 87,562 | 87,131 | 87,131 | 87,131 | 87,073 | |||||||||||||||||||||||
Retained earnings | 86,804 | 83,971 | 80,376 | 76,150 | 72,729 | |||||||||||||||||||||||
Accumulated other comprehensive (loss) income | (6,674 | ) | 3,462 | 3,610 | 3,893 | 2,917 | ||||||||||||||||||||||
Treasury stock, at cost; 1,473,961 shares as of March 31, 2022 | (30,048 | ) | (29,229 | ) | (25,062 | ) | (21,130 | ) | (18,049 | ) | ||||||||||||||||||
TOTAL STOCKHOLDERS' EQUITY | 137,644 | 145,335 | 146,055 | 146,044 | 144,670 | |||||||||||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,323,298 | $ | 1,331,006 | $ | 1,365,865 | $ | 1,360,218 | $ | 1,388,093 | ||||||||||||||||||
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 | 2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||||||||||||||
INTEREST AND DIVIDEND INCOME | ||||||||||||||||||||||||||||
Interest and fees on loans | $ | 10,985 | $ | 11,586 | $ | 12,258 | $ | 11,885 | $ | 12,167 | ||||||||||||||||||
Interest-earning deposits in other institutions | 24 | 30 | 30 | 12 | 18 | |||||||||||||||||||||||
Federal funds sold | 3 | 1 | 1 | 1 | - | |||||||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||
Taxable interest | 443 | 438 | 461 | 410 | 370 | |||||||||||||||||||||||
Tax-exempt interest | 784 | 732 | 673 | 602 | 558 | |||||||||||||||||||||||
Dividends on stock | 24 | 23 | 24 | 26 | 29 | |||||||||||||||||||||||
Total interest and dividend income | 12,263 | 12,810 | 13,447 | 12,936 | 13,142 | |||||||||||||||||||||||
INTEREST EXPENSE | ||||||||||||||||||||||||||||
Deposits | 726 | 783 | 915 | 1,010 | 1,205 | |||||||||||||||||||||||
Other borrowings | 69 | 67 | 69 | 71 | 75 | |||||||||||||||||||||||
Total interest expense | 795 | 850 | 984 | 1,081 | 1,280 | |||||||||||||||||||||||
NET INTEREST INCOME | 11,468 | 11,960 | 12,463 | 11,855 | 11,862 | |||||||||||||||||||||||
Provision for loan losses | - | (200 | ) | - | 200 | 700 | ||||||||||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 11,468 | 12,160 | 12,463 | 11,655 | 11,162 | |||||||||||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||||||||||
Service charges on deposit accounts | 914 | 906 | 876 | 856 | 787 | |||||||||||||||||||||||
Gain (loss) on equity securities | 33 | (14 | ) | 102 | 40 | 81 | ||||||||||||||||||||||
Earnings on bank-owned life insurance | 106 | 106 | 108 | 106 | 226 | |||||||||||||||||||||||
Gain on sale of loans | 3 | 118 | 309 | 221 | 592 | |||||||||||||||||||||||
Revenue from investment services | 141 | 198 | 192 | 210 | 127 | |||||||||||||||||||||||
Other income | 206 | 221 | 234 | 199 | 405 | |||||||||||||||||||||||
Total noninterest income | 1,403 | 1,535 | 1,821 | 1,632 | 2,218 | |||||||||||||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||||||||||||||
Salaries and employee benefits | 4,386 | 4,088 | 4,488 | 4,321 | 4,254 | |||||||||||||||||||||||
Occupancy expense | 505 | 542 | 425 | 517 | 564 | |||||||||||||||||||||||
Equipment expense | 315 | 358 | 333 | 313 | 357 | |||||||||||||||||||||||
Data processing costs | 682 | 660 | 736 | 698 | 786 | |||||||||||||||||||||||
Ohio state franchise tax | 293 | 285 | 287 | 286 | 286 | |||||||||||||||||||||||
Federal deposit insurance expense | 50 | 50 | 150 | 150 | 144 | |||||||||||||||||||||||
Professional fees | 455 | 435 | 136 | 323 | 419 | |||||||||||||||||||||||
Net gain (loss) on other real estate owned | 8 | (66 | ) | 9 | 22 | 46 | ||||||||||||||||||||||
Advertising expense | 228 | 221 | 222 | 221 | 221 | |||||||||||||||||||||||
Software amortization expense | 48 | 119 | 88 | 74 | 80 | |||||||||||||||||||||||
Core deposit intangible amortization | 77 | 80 | 81 | 80 | 80 | |||||||||||||||||||||||
Other expense | 1,219 | 1,059 | 951 | 889 | 1,080 | |||||||||||||||||||||||
Total noninterest expense | 8,266 | 7,831 | 7,906 | 7,894 | 8,317 | |||||||||||||||||||||||
Income before income taxes | 4,605 | 5,864 | 6,378 | 5,393 | 5,063 | |||||||||||||||||||||||
Income taxes | 772 | 1,027 | 1,174 | 968 | 896 | |||||||||||||||||||||||
NET INCOME | $ | 3,833 | $ | 4,837 | $ | 5,204 | $ | 4,425 | $ | 4,167 | ||||||||||||||||||
PTPP (1) | $ | 4,605 | $ | 5,664 | $ | 6,378 | $ | 5,593 | $ | 5,763 | ||||||||||||||||||
(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 | ||||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||
2022 | 2021 | 2021 | 2021 | 2021 | ||||||||||||||||||||||||
Per common share data | ||||||||||||||||||||||||||||
Net income per common share - basic | $ | 0.65 | $ | 0.81 | $ | 0.85 | $ | 0.70 | $ | 0.65 | ||||||||||||||||||
Net income per common share - diluted | $ | 0.65 | $ | 0.81 | $ | 0.85 | $ | 0.70 | $ | 0.65 | ||||||||||||||||||
Dividends declared per share | $ | 0.17 | $ | 0.21 | $ | 0.16 | $ | 0.16 | $ | 0.16 | ||||||||||||||||||
Book value per share (period end) | $ | 23.43 | $ | 24.68 | $ | 24.13 | $ | 23.50 | $ | 22.80 | ||||||||||||||||||
Tangible book value per share (period end) (2) (3) | $ | 20.64 | $ | 21.88 | $ | 21.39 | $ | 20.82 | $ | 20.17 | ||||||||||||||||||
Dividends declared | $ | 1,000 | $ | 1,242 | $ | 978 | $ | 1,004 | $ | 1,016 | ||||||||||||||||||
Dividend yield | 2.78 | % | 3.37 | % | 2.66 | % | 2.72 | % | 3.10 | % | ||||||||||||||||||
Dividend payout ratio | 26.09 | % | 25.68 | % | 18.79 | % | 22.69 | % | 24.38 | % | ||||||||||||||||||
Average shares outstanding - basic | 5,879,025 | 5,951,838 | 6,136,648 | 6,297,071 | 6,364,132 | |||||||||||||||||||||||
Average shares outstanding - diluted | 5,889,836 | 5,975,333 | 6,157,181 | 6,312,230 | 6,378,493 | |||||||||||||||||||||||
Period ending shares outstanding | 5,873,565 | 5,888,737 | 6,054,083 | 6,215,511 | 6,344,657 | |||||||||||||||||||||||
Selected ratios | ||||||||||||||||||||||||||||
Return on average assets | 1.17 | % | 1.41 | % | 1.51 | % | 1.30 | % | 1.22 | % | ||||||||||||||||||
Return on average equity | 10.75 | % | 13.17 | % | 13.95 | % | 12.10 | % | 11.64 | % | ||||||||||||||||||
Return on average tangible common equity (2) (4) | 12.13 | % | 14.85 | % | 15.71 | % | 13.65 | % | 13.16 | % | ||||||||||||||||||
Efficiency (1) | 62.54 | % | 56.56 | % | 54.04 | % | 57.18 | % | 57.81 | % | ||||||||||||||||||
Equity to assets at period end | 10.40 | % | 10.92 | % | 10.69 | % | 10.74 | % | 10.42 | % | ||||||||||||||||||
Noninterest expense to average assets | 0.62 | % | 0.58 | % | 0.58 | % | 0.58 | % | 0.60 | % | ||||||||||||||||||
(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 | 2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||
Loans receivable (2) | 4.53 | % | 4.61 | % | 4.74 | % | 4.43 | % | 4.48 | % | ||||||||||||||||||
Investment securities (2) | 3.41 | % | 3.30 | % | 3.37 | % | 3.47 | % | 3.75 | % | ||||||||||||||||||
Interest-earning deposits with other banks | 0.23 | % | 0.20 | % | 0.21 | % | 0.18 | % | 0.20 | % | ||||||||||||||||||
Total interest-earning assets | 4.06 | % | 4.07 | % | 4.20 | % | 4.05 | % | 4.11 | % | ||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||
Interest-bearing demand deposits | 0.14 | % | 0.12 | % | 0.12 | % | 0.12 | % | 0.16 | % | ||||||||||||||||||
Money market deposits | 0.47 | % | 0.47 | % | 0.46 | % | 0.46 | % | 0.47 | % | ||||||||||||||||||
Savings deposits | 0.06 | % | 0.06 | % | 0.06 | % | 0.06 | % | 0.07 | % | ||||||||||||||||||
Certificates of deposit | 0.87 | % | 0.90 | % | 1.08 | % | 1.19 | % | 1.28 | % | ||||||||||||||||||
Total interest-bearing deposits | 0.37 | % | 0.36 | % | 0.41 | % | 0.46 | % | 0.53 | % | ||||||||||||||||||
Non-Deposit Funding: | ||||||||||||||||||||||||||||
Borrowings | 2.16 | % | 2.09 | % | 2.11 | % | 2.18 | % | 2.12 | % | ||||||||||||||||||
Total interest-bearing liabilities | 0.39 | % | 0.37 | % | 0.42 | % | 0.47 | % | 0.54 | % | ||||||||||||||||||
Cost of deposits | 0.25 | % | 0.26 | % | 0.30 | % | 0.34 | % | 0.40 | % | ||||||||||||||||||
Cost of funds | 0.27 | % | 0.27 | % | 0.31 | % | 0.35 | % | 0.41 | % | ||||||||||||||||||
Net interest margin (1) | 3.80 | % | 3.82 | % | 3.91 | % | 3.72 | % | 3.73 | % | ||||||||||||||||||
(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 | 2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||||||||||||||
(Dollar amounts in thousands, unaudited) | ||||||||||||||||||||||||||||
Nonperforming loans (1) | $ | 4,728 | $ | 4,859 | $ | 6,806 | $ | 7,760 | $ | 8,958 | ||||||||||||||||||
Other real estate owned | 6,992 | 6,992 | 7,090 | 7,090 | 7,372 | |||||||||||||||||||||||
Nonperforming assets | $ | 11,720 | $ | 11,851 | $ | 13,896 | $ | 14,850 | $ | 16,330 | ||||||||||||||||||
Allowance for loan losses | $ | 14,492 | $ | 14,342 | $ | 14,234 | $ | 14,200 | $ | 14,122 | ||||||||||||||||||
Allowance for loan losses/total loans | 1.48 | % | 1.46 | % | 1.41 | % | 1.34 | % | 1.28 | % | ||||||||||||||||||
Net (recoveries) charge-offs: | ||||||||||||||||||||||||||||
Quarter-to-date | $ | (150 | ) | $ | (308 | ) | $ | (34 | ) | $ | 122 | $ | 37 | |||||||||||||||
Net (recoveries) charge-offs to average loans, annualized: | ||||||||||||||||||||||||||||
Quarter-to-date | (0.06 | )% | (0.12 | )% | (0.01 | )% | 0.05 | % | 0.01 | |||||||||||||||||||
Nonperforming loans/total loans | 0.48 | % | 0.49 | % | 0.67 | % | 0.73 | % | 0.81 | % | ||||||||||||||||||
Allowance for loan losses/nonperforming loans | 306.51 | % | 295.16 | % | 209.14 | % | 182.99 | % | 157.65 | % | ||||||||||||||||||
Nonperforming assets/total assets | 0.89 | % | 0.89 | % | 1.02 | % | 1.09 | % | 1.18 | % | ||||||||||||||||||
(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, | |||||||||||||||||||||||
2022 | 2021 | 2021 | 2021 | 2021 | ||||||||||||||||||||||||
Stockholders' Equity | $ | 137,644 | $ | 145,335 | $ | 146,055 | $ | 146,044 | $ | 144,670 | ||||||||||||||||||
Less Goodwill and other intangibles | 16,397 | 16,474 | 16,555 | 16,635 | 16,715 | |||||||||||||||||||||||
Tangible Common Equity | $ | 121,247 | $ | 128,861 | $ | 129,500 | $ | 129,409 | $ | 127,955 | ||||||||||||||||||
Shares outstanding | 5,873,565 | 5,888,737 | 6,054,083 | 6,215,511 | 6,344,657 | |||||||||||||||||||||||
Tangible book value per share | $ | 20.64 | $ | 21.88 | $ | 21.39 | $ | 20.82 | $ | 20.17 | ||||||||||||||||||
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, | ||||||||||||||||||||||||
2022 | 2021 | 2021 | 2021 | 2021 | ||||||||||||||||||||||||
Average Stockholders' Equity | $ | 144,630 | $ | 145,716 | $ | 148,048 | $ | 146,719 | $ | 145,208 | ||||||||||||||||||
Less Average Goodwill and other intangibles | 16,435 | 16,513 | 16,594 | 16,674 | 16,754 | |||||||||||||||||||||||
Average Tangible Common Equity | $ | 128,195 | $ | 129,203 | $ | 131,454 | $ | 130,045 | $ | 128,454 | ||||||||||||||||||
Net income | $ | 3,833 | $ | 4,837 | $ | 5,204 | $ | 4,425 | $ | 4,167 | ||||||||||||||||||
Return on average tangible common equity (annualized) | 12.13 | % | 14.85 | % | 15.71 | % | 13.65 | % | 13.16 | % | ||||||||||||||||||
Reconciliation of Pre-Tax Pre-Provision Income (PTPP) | For the Three Months Ended | |||||||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||||||
2022 | 2021 | 2021 | 2021 | 2021 | ||||||||||||||||||||||||
Net income | $ | 3,833 | $ | 4,837 | $ | 5,204 | $ | 4,425 | $ | 4,167 | ||||||||||||||||||
Add Income Taxes | 772 | 1,027 | 1,174 | 968 | 896 | |||||||||||||||||||||||
Add Provision for loan losses | - | (200 | ) | - | 200 | 700 | ||||||||||||||||||||||
PTPP | $ | 4,605 | $ | 5,664 | $ | 6,378 | $ | 5,593 | $ | 5,763 | ||||||||||||||||||
MIDDLEFIELD BANC CORP. | ||||||||||||||||||||||||||||
Average Balance Sheets | ||||||||||||||||||||||||||||
(Dollar amounts in thousands, unaudited) | ||||||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||||||
March 31, | March 31, | |||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||
Average | Average | Average | Average | |||||||||||||||||||||||||
Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost | |||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||
Loans receivable (3) | $ | 983,853 | $ | 10,985 | 4.53 | % | $ | 1,103,373 | $ | 12,167 | 4.48 | % | ||||||||||||||||
Investment securities (3) | 170,829 | 1,227 | 3.41 | % | 116,510 | 928 | 3.75 | % | ||||||||||||||||||||
Interest-earning deposits with other banks (4) | 91,690 | 51 | 0.23 | % | 93,709 | 47 | 0.20 | % | ||||||||||||||||||||
Total interest-earning assets | 1,246,372 | 12,263 | 4.06 | % | 1,313,592 | 13,142 | 4.11 | % | ||||||||||||||||||||
Noninterest-earning assets | 85,667 | 71,007 | ||||||||||||||||||||||||||
Total assets | $ | 1,332,039 | $ | 1,384,599 | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 170,353 | $ | 60 | 0.14 | % | $ | 203,047 | $ | 78 | 0.16 | % | ||||||||||||||||
Money market deposits | 184,265 | 212 | 0.47 | % | 195,275 | 228 | 0.47 | % | ||||||||||||||||||||
Savings deposits | 260,162 | 38 | 0.06 | % | 256,151 | 47 | 0.07 | % | ||||||||||||||||||||
Certificates of deposit | 193,657 | 416 | 0.87 | % | 269,493 | 852 | 1.28 | % | ||||||||||||||||||||
Short-term borrowings | - | - | 0.00 | % | 111 | - | 0.00 | % | ||||||||||||||||||||
Other borrowings | 12,943 | 69 | 2.16 | % | 14,258 | 75 | 2.12 | % | ||||||||||||||||||||
Total interest-bearing liabilities | 821,380 | 795 | 0.39 | % | 938,335 | 1,280 | 0.54 | % | ||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||
Noninterest-bearing demand deposits | 359,656 | 295,199 | ||||||||||||||||||||||||||
Other liabilities | 6,373 | 5,857 | ||||||||||||||||||||||||||
Stockholders' equity | 144,630 | 145,208 | ||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 1,332,039 | $ | 1,384,599 | ||||||||||||||||||||||||
Net interest income | $ | 11,468 | $ | 11,862 | ||||||||||||||||||||||||
Interest rate spread (1) | 3.67 | % | 3.57 | % | ||||||||||||||||||||||||
Net interest margin (2) | 3.80 | % | 3.73 | % | ||||||||||||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 151.74 | % | 139.99 | % | ||||||||||||||||||||||||
(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 $223 and $169 for the three months ended March 31, 2022 and 2021, respectively | ||||||||||||||||||||||||||||
(4) Includes dividends received on restricted stock. | ||||||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||
Average | Average | Average | Average | |||||||||||||||||||||||||
Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost | |||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||
Loans receivable (3) | $ | 983,853 | $ | 10,985 | 4.53 | % | $ | 999,229 | $ | 11,586 | 4.61 | % | ||||||||||||||||
Investment securities (3) | 170,829 | 1,227 | 3.41 | % | 164,254 | 1,170 | 3.30 | % | ||||||||||||||||||||
Interest-earning deposits with other banks (4) | 91,690 | 51 | 0.23 | % | 104,804 | 54 | 0.20 | % | ||||||||||||||||||||
Total interest-earning assets | 1,246,372 | 12,263 | 4.06 | % | 1,268,287 | 12,810 | 4.07 | % | ||||||||||||||||||||
Noninterest-earning assets | 85,667 | 90,556 | ||||||||||||||||||||||||||
Total assets | $ | 1,332,039 | $ | 1,358,843 | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 170,353 | $ | 60 | 0.14 | % | $ | 212,861 | $ | 66 | 0.12 | % | ||||||||||||||||
Money market deposits | 184,265 | 212 | 0.47 | % | 180,201 | 214 | 0.47 | % | ||||||||||||||||||||
Savings deposits | 260,162 | 38 | 0.06 | % | 257,344 | 39 | 0.06 | % | ||||||||||||||||||||
Certificates of deposit | 193,657 | 416 | 0.87 | % | 204,904 | 464 | 0.90 | % | ||||||||||||||||||||
Other borrowings | 12,943 | 69 | 2.16 | % | 12,934 | 67 | 2.09 | % | ||||||||||||||||||||
Total interest-bearing liabilities | 821,380 | 795 | 0.39 | % | 868,244 | 850 | 0.37 | % | ||||||||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||
Noninterest-bearing demand deposits | 359,656 | 337,900 | ||||||||||||||||||||||||||
Other liabilities | 6,373 | 6,983 | ||||||||||||||||||||||||||
Stockholders' equity | 144,630 | 145,716 | ||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 1,332,039 | $ | 1,358,843 | ||||||||||||||||||||||||
Net interest income | $ | 11,468 | $ | 11,960 | ||||||||||||||||||||||||
Interest rate spread (1) | 3.67 | % | 3.70 | % | ||||||||||||||||||||||||
Net interest margin (2) | 3.80 | % | 3.82 | % | ||||||||||||||||||||||||
Ratio of average interest-earning assets to average interest-bearing liabilities | 151.74 | % | 146.07 | % | ||||||||||||||||||||||||
(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 $223 and $210 for the three months ended March 31, 2022, and December 31, 2021, respectively. | ||||||||||||||||||||||||||||
(4) Includes dividends received on restricted stock. |
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 |