MIDDLEFIELD, Ohio, April 20, 2021 (GLOBE NEWSWIRE) -- Middlefield Banc Corp. (NASDAQ: MBCN) today reported financial results for the 2021 first quarter ended March 31, 2021.
2021 First Quarter Financial Highlights Include (on a year-over-year basis unless noted):
- Net income increased to a quarterly record of $4.2 million, or a record $0.65 per diluted share
- Net interest margin improved by 10 basis points to 3.73%, compared to 3.63%
- Total noninterest income was up 106.5% to $2.2 million
- Pre-tax, pre-provision for loan losses(1) income increased 49.5% to $5.8 million
- Return on average assets increased to 1.22% from 0.35%
- Return on average equity increased to 11.64% from 3.01%
- Return on average tangible common equity(1) increased to 13.16% from 3.43%
- Efficiency ratio improved to 57.91%, compared to 63.47%
- Net charge-offs declined 86.0% to $37,000
- First quarter cash dividend increased 6.7% to $0.16 per share
“Our record first quarter financial results are encouraging and reflects the successful actions we took last year to navigate the impacts of the COVID-19 pandemic, our commitment to our communities, and the dedication of our team,” stated Thomas G. Caldwell, President and Chief Executive Officer. “While the COVID-19 pandemic continues, we are seeing improving trends across many aspects of our business and across many of our markets. We believe 2021 will be a strong year for Middlefield.”
“Last year we quickly implemented our Paycheck Protection Program (“PPP”) process and helped provide more than 1,410 small businesses over $145 million of support, while protecting over 12,000 jobs. We continue to help small business customers throughout our communities and during the first quarter, we processed an additional $60 million of PPP loans. During the first quarter, we also helped customers secure $49.7 million of PPP forgiveness, which provided a $750,000 benefit to our yield on earnings assets. Over 45% of PPP applicants booked were to small businesses without a prior banking relationship, which is a testament to the agility of our organization, our local presence, and our community-oriented values.”
“We remain focused on managing all aspects of the business that are under our control and I am proud of the success we have achieved managing asset quality, expenses, and noninterest income. As a result we experienced robust improvements in net interest margin, return on equity, and return on tangible common equity, which have all increased above pre-pandemic levels. In addition, during the first quarter, noninterest income doubled to a quarterly record of $2.2 million as a result of our long-term strategic focus to diversify revenues and strong residential mortgage demand. We continue to find new ways to support our small business customers, and we have established unique, safe, and secure offerings for the rapidly growing Ohio cannabis industry. We believe there are significant opportunities to expand our leading marijuana related business (“MRB”) banking portfolio and we will continue to seek additional growth opportunities as the economy re-opens.”
“I continue to be very thankful for the proven leadership team we have assembled and our loyal customers, employees, and shareholders. Thank you for your continued support,” concluded Mr. Caldwell.
Income Statement
Net interest income for the 2021 first quarter was $11.9 million, compared to $10.0 million for the 2020 first quarter. The net interest margin for the 2021 first quarter was 3.73%, compared to 3.63% for the same period of 2020. For the 2021 first quarter, noninterest income increased 106.5% to $2.2 million from $1.1 million for the same period of 2020. Noninterest expense for the 2021 first quarter increased 15.2% to $8.4 million, from the 2020 first quarter.
Balance Sheet
Total assets at March 31, 2021, increased 14.3% to $1.39 billion, compared to $1.21 billion at March 31, 2020. Net loans at March 31, 2021 increased 10.2% to $1.09 billion, compared to $988.8 million at March 31, 2020. Over the last 12 months, Middlefield has originated $205.4 million of loans under the PPP and helped customers receive $78.5 million of forgiveness payments under the terms of the program. The balance of PPP loans outstanding at March 31, 2021, was $126.9 million.
Total deposits at March 31, 2021, was $1.22 billion, compared to $1.00 billion at March 31, 2020. The 22.1% increase in deposits was primarily a result of increases in interest-bearing, money market and non-interest-bearing accounts, partially offset by decreases time-based accounts. The investment portfolio, classified as available for sale, was $123.2 million at March 31, 2021, compared with $103.0 million at March 31, 2020.
Donald L. Stacy, Chief Financial Officer stated, “We entered 2021 with a strengthened balance sheet as a result of last year’s strategies to increase our allowance for loan losses, as well as favorable asset performance and robust liquidity and capital levels. Our allowance for loan losses to total loans now stands at 1.28%, compared to 1.22% at December 31, 2020 and 0.93% at March 31, 2020. The increase in nonperforming loans is primarily due to payment deferrals we extended to certain business customers to help them navigate the continued challenges of the COVID-19 crisis. At March 31, 2021 we had $25.3 million in deferrals, compared to $214.8 million at June 30, 2020, a decline of over 88%.”
“We remain focused on managing risk and pricing on loans, while proactively controlling our cost of funds and operating expenses. In addition, we continue to focus on creating value for our shareholders. During the quarter we increased our quarterly dividend payment by 6.7% and repurchased 49,468 shares of our common stock. With an equity to assets ratio of 10.4%, $100.5 million of cash and cash equivalents, and $123.2 million of investment securities available for sale we have a strong liquidity position to support our customers and our growth initiatives,” concluded Mr. Stacy.
Stockholders’ Equity and Dividends
At March 31, 2021, stockholders’ equity increased 8.7% to $144.3 million compared to $132.7 million at March 31, 2020. On a per share basis, shareholders’ equity at March 31, 2021, was $22.74 compared to $20.83, an increase of 9.2%, over the same period last year.
At March 31, 2021, tangible stockholders’ equity(1) increased 10.3% to $127.6 million for the 2021 first quarter, compared to $115.6 million at March 31, 2020. On a per-share basis, tangible stockholders’ equity(1) was $20.11 at March 31, 2021, compared to $18.16 at March 31, 2020, an increase of 10.7%.
During the 2021 first quarter, the Company paid cash dividends of $0.16 per share, compared to $0.15 per share for the first quarter last year.
At March 31, 2021, the Company had an equity to assets leverage ratio of 10.4%, compared to 10.9% at March 31, 2020.
Asset Quality
The provision for loan losses for the 2021 first quarter was $700,000, compared to $2.7 million for the same period a year ago. The year-over-year decline in the provision for loan losses was partially due to strong asset quality and last year’s prudent build in the Company’s allowance for loan losses associated with the potential economic impacts caused by the COVID-19 pandemic.
Net charge-offs were $37,000, or 0.01% of average loans, annualized, during the 2021 first quarter, compared to net charge-offs of $264,000, or 0.11% of average loans, annualized, at March 31, 2020.
Nonperforming assets at March 31, 2021, were $16.3 million, compared to $8.9 million at March 31, 2020. The allowance for loan losses at March 31, 2021, stood at $14.1 million, or 1.28% of total loans, compared to $9.2 million, or 0.93% of total loans at March 31, 2020.
About Middlefield Banc Corp.
Middlefield Banc Corp., headquartered in Middlefield, Ohio, is the bank holding company of The Middlefield Banking Company with total assets of $1.39 billion at March 31, 2021. The bank operates 16 full-service banking centers and an LPL Financial® brokerage office serving Beachwood, Chardon, Cortland, Dublin, Garrettsville, Mantua, Middlefield, Newbury, Orwell, Plain City, Powell, Solon, Sunbury, Twinsburg, and Westerville. The Bank also operates a Loan Production Office in Mentor, Ohio.
Additional information is available at www.middlefieldbank.bank
(1) This press release includes disclosure of Middlefield Banc Corp.’s tangible book value per share, return on average tangible equity, and pre-tax, pre-provision for loan losses income, which are financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed by GAAP. Middlefield Banc Corp. believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Middlefield Banc Corp.’s marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. The reconciliations of non-GAAP financial measures are included in the tables following Consolidated Financial Highlights below.
This press release of Middlefield Banc Corp. and the reports Middlefield Banc Corp. files with the Securities and Exchange Commission often contain “forward-looking statements” relating to present or future trends or factors affecting the banking industry and, specifically, the financial operations, markets and products of Middlefield Banc Corp. These forward-looking statements involve certain risks and uncertainties. There are a number of important factors that could cause Middlefield Banc Corp.’s future results to differ materially from historical performance or projected performance. These factors include, but are not limited to: (1) a significant increase in competitive pressures among financial institutions; (2) changes in the interest rate environment that may reduce interest margins; (3) changes in prepayment speeds, charge-offs and loan loss provisions; (4) less favorable than expected general economic conditions; (5) legislative or regulatory changes that may adversely affect businesses in which Middlefield Banc Corp. is engaged; (6) technological issues which may adversely affect Middlefield Banc Corp.’s financial operations or customers; (7) the effect of the COVID-19 pandemic, including on our credit quality and business operations, as well as its impact on general economic and financial market conditions; (8) changes in the securities markets; or (9) risk factors mentioned in the reports and registration statements Middlefield Banc Corp. files with the Securities and Exchange Commission. Middlefield Banc Corp. undertakes no obligation to release revisions to these forward-looking statements or to reflect events or circumstances after the date of this press release.
| Company Contact: | Investor and Media Contact: |
| Thomas G. Caldwell President/Chief Executive Officer Middlefield Banc Corp. (440) 632-1666 Ext. 3200 tcaldwell@middlefieldbank.com | Andrew M. Berger Managing Director SM Berger & Company, Inc. (216) 464-6400 andrew@smberger.com |
MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(Dollar amounts in thousands, unaudited)
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||
| Balance Sheets (period end) | 2021 | 2020 | 2020 | 2020 | 2020 | |||||||||
| ASSETS | ||||||||||||||
| Cash and due from banks | $ | 93,037 | $ | 92,874 | $ | 46,097 | $ | 55,766 | $ | 53,533 | ||||
| Federal funds sold | 7,436 | 19,543 | 6,884 | 2,520 | 1,800 | |||||||||
| Cash and cash equivalents | 100,473 | 112,417 | 52,981 | 58,286 | 55,333 | |||||||||
| Equity securities, at fair value | 690 | 609 | 553 | 581 | 550 | |||||||||
| Investment securities available for sale, at fair value | 123,218 | 114,360 | 112,968 | 112,529 | 102,959 | |||||||||
| Loans held for sale | 1,260 | 878 | 10,457 | 4,151 | 513 | |||||||||
| Loans: | ||||||||||||||
| Commercial real estate: | ||||||||||||||
| Owner occupied | 104,379 | 103,121 | 107,342 | 110,134 | 113,272 | |||||||||
| Non-owner occupied | 304,623 | 309,424 | 310,512 | 300,577 | 292,775 | |||||||||
| Multifamily | 39,015 | 39,562 | 39,622 | 37,604 | 52,276 | |||||||||
| Residential real estate | 228,052 | 233,995 | 222,237 | 227,427 | 233,900 | |||||||||
| Commercial and industrial | 242,651 | 232,044 | 258,313 | 240,096 | 106,797 | |||||||||
| Home equity lines of credit | 111,474 | 112,543 | 115,223 | 117,196 | 114,933 | |||||||||
| Construction and other | 64,960 | 63,573 | 60,613 | 66,015 | 71,186 | |||||||||
| Consumer installment | 9,046 | 9,823 | 10,534 | 11,210 | 12,861 | |||||||||
| Total loans | 1,104,200 | 1,104,085 | 1,124,396 | 1,110,259 | 998,000 | |||||||||
| Less allowance for loan and lease losses | 14,122 | 13,459 | 11,359 | 10,210 | 9,244 | |||||||||
| Net loans | 1,090,078 | 1,090,626 | 1,113,037 | 1,100,049 | 988,756 | |||||||||
| Premises and equipment, net | 18,002 | 18,333 | 18,633 | 18,962 | 17,653 | |||||||||
| Goodwill | 15,071 | 15,071 | 15,071 | 15,071 | 15,071 | |||||||||
| Core deposit intangibles | 1,644 | 1,724 | 1,807 | 1,890 | 1,973 | |||||||||
| Bank-owned life insurance | 16,740 | 16,938 | 16,832 | 16,723 | 16,618 | |||||||||
| Other real estate owned | 7,372 | 7,387 | 7,391 | 687 | 456 | |||||||||
| Accrued interest receivable and other assets | 13,156 | 13,636 | 15,079 | 14,391 | 14,057 | |||||||||
| TOTAL ASSETS | $ | 1,387,704 | $ | 1,391,979 | $ | 1,364,809 | $ | 1,343,320 | $ | 1,213,939 | ||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
| 2021 | 2020 | 2020 | 2020 | 2020 | |||||||||||||||
| LIABILITIES | |||||||||||||||||||
| Deposits: | |||||||||||||||||||
| Noninterest-bearing demand | $ | 317,224 | $ | 291,347 | $ | 268,838 | $ | 270,738 | $ | 206,372 | |||||||||
| Interest-bearing demand | 215,684 | 195,722 | 179,080 | 136,722 | 125,184 | ||||||||||||||
| Money market | 187,204 | 198,493 | 184,936 | 168,842 | 156,556 | ||||||||||||||
| Savings | 259,973 | 243,888 | 231,696 | 218,545 | 175,468 | ||||||||||||||
| Time | 245,342 | 295,750 | 329,413 | 363,420 | 340,130 | ||||||||||||||
| Total deposits | 1,225,427 | 1,225,200 | 1,193,963 | 1,158,267 | 1,003,710 | ||||||||||||||
| Short-term borrowings | - | - | - | 20,417 | 60,000 | ||||||||||||||
| Other borrowings | 13,095 | 17,038 | 17,100 | 17,162 | 12,662 | ||||||||||||||
| Accrued interest payable and other liabilities | 4,901 | 5,931 | 11,690 | 6,779 | 4,880 | ||||||||||||||
| TOTAL LIABILITIES | 1,243,423 | 1,248,169 | 1,222,753 | 1,202,625 | 1,081,252 | ||||||||||||||
| STOCKHOLDERS' EQUITY | |||||||||||||||||||
| Common stock, no par value; 10,000,000 shares authorized, 7,323,487 | |||||||||||||||||||
| shares issued, 6,344,657 shares outstanding as of March 31, 2021 | 87,073 | 86,886 | 86,871 | 86,722 | 86,722 | ||||||||||||||
| Retained earnings | 72,729 | 69,578 | 68,046 | 67,150 | 65,140 | ||||||||||||||
| Accumulated other comprehensive income (loss) | 2,917 | 4,284 | 4,077 | 3,761 | (2,237 | ) | |||||||||||||
| Treasury stock, at cost; 978,830 shares as of March 31, 2021 | (18,438 | ) | (16,938 | ) | (16,938 | ) | (16,938 | ) | (16,938 | ) | |||||||||
| TOTAL STOCKHOLDERS' EQUITY | 144,281 | 143,810 | 142,056 | 140,695 | 132,687 | ||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,387,704 | $ | 1,391,979 | $ | 1,364,809 | $ | 1,343,320 | $ | 1,213,939 | |||||||||
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 | 2021 | 2020 | 2020 | 2020 | 2020 | |||||||||||||
| INTEREST AND DIVIDEND INCOME | ||||||||||||||||||
| Interest and fees on loans | $ | 12,167 | $ | 12,041 | $ | 12,603 | $ | 12,281 | $ | 12,078 | ||||||||
| Interest-earning deposits in other institutions | 18 | 9 | 8 | 7 | 94 | |||||||||||||
| Federal funds sold | - | 1 | - | - | 21 | |||||||||||||
| Investment securities: | ||||||||||||||||||
| Taxable interest | 370 | 297 | 249 | 206 | 157 | |||||||||||||
| Tax-exempt interest | 558 | 591 | 618 | 634 | 629 | |||||||||||||
| Dividends on stock | 29 | 28 | 29 | 27 | 30 | |||||||||||||
| Total interest and dividend income | 13,142 | 12,967 | 13,507 | 13,155 | 13,009 | |||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||
| Deposits | 1,205 | 1,655 | 2,106 | 2,336 | 2,865 | |||||||||||||
| Short-term borrowings | - | (2 | ) | 14 | 32 | 35 | ||||||||||||
| Other borrowings | 39 | 43 | 28 | 62 | 76 | |||||||||||||
| Total interest expense | 1,244 | 1,696 | 2,148 | 2,430 | 2,976 | |||||||||||||
| NET INTEREST INCOME | 11,898 | 11,271 | 11,359 | 10,725 | 10,033 | |||||||||||||
| Provision for loan losses | 700 | 2,100 | 4,000 | 1,000 | 2,740 | |||||||||||||
| NET INTEREST INCOME AFTER PROVISION | ||||||||||||||||||
| FOR LOAN LOSSES | 11,198 | 9,171 | 7,359 | 9,725 | 7,293 | |||||||||||||
| NONINTEREST INCOME | ||||||||||||||||||
| Service charges on deposit accounts | 787 | 729 | 691 | 566 | 553 | |||||||||||||
| Gain (loss) on equity securities | 81 | 56 | (28 | ) | 31 | (160 | ) | |||||||||||
| Earnings on bank-owned life insurance | 226 | 106 | 109 | 105 | 107 | |||||||||||||
| Gains on sale of loans | 592 | 332 | 660 | 381 | 114 | |||||||||||||
| Other income | 532 | 387 | 379 | 412 | 460 | |||||||||||||
| Total noninterest income | 2,218 | 1,610 | 1,811 | 1,495 | 1,074 | |||||||||||||
| NONINTEREST EXPENSE | ||||||||||||||||||
| Salaries and employee benefits | 4,254 | 4,458 | 3,657 | 4,136 | 3,584 | |||||||||||||
| Occupancy expense | 600 | 628 | 497 | 483 | 550 | |||||||||||||
| Equipment expense | 357 | 365 | 363 | 307 | 273 | |||||||||||||
| Data processing costs | 786 | 617 | 683 | 684 | 666 | |||||||||||||
| Ohio state franchise tax | 286 | 251 | 282 | 281 | 268 | |||||||||||||
| Federal deposit insurance expense | 144 | 103 | 123 | 74 | 123 | |||||||||||||
| Professional fees | 419 | 352 | 289 | 369 | 349 | |||||||||||||
| Net loss (gain) on other real estate owned | 46 | (172 | ) | (184 | ) | (33 | ) | 1 | ||||||||||
| Advertising expense | 221 | 55 | 217 | 217 | 209 | |||||||||||||
| Software amortization expense | 80 | 66 | 70 | 74 | 141 | |||||||||||||
| Core deposit intangible amortization | 80 | 83 | 83 | 83 | 83 | |||||||||||||
| Other expense | 1,080 | 1,019 | 942 | 1,014 | 1,005 | |||||||||||||
| Total noninterest expense | 8,353 | 7,825 | 7,022 | 7,689 | 7,252 | |||||||||||||
| Income before income taxes | 5,063 | 2,956 | 2,148 | 3,531 | 1,115 | |||||||||||||
| Income taxes | 896 | 467 | 295 | 565 | 74 | |||||||||||||
| NET INCOME | $ | 4,167 | $ | 2,489 | $ | 1,853 | $ | 2,966 | $ | 1,041 | ||||||||
| PTPP (1) | $ | 5,763 | $ | 5,056 | $ | 6,148 | $ | 4,531 | $ | 3,855 | ||||||||
(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, | |||||||||||||||
| 2021 | 2020 | 2020 | 2020 | 2020 | |||||||||||||||
| Per common share data | |||||||||||||||||||
| Net income per common share - basic | $ | 0.65 | $ | 0.39 | $ | 0.29 | $ | 0.47 | $ | 0.16 | |||||||||
| Net income per common share - diluted | $ | 0.65 | $ | 0.39 | $ | 0.29 | $ | 0.46 | $ | 0.16 | |||||||||
| Dividends declared per share | $ | 0.16 | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.15 | |||||||||
| Book value per share (period end) | $ | 22.74 | $ | 22.54 | $ | 22.27 | $ | 22.09 | $ | 20.83 | |||||||||
| Tangible book value per share (period end) (2) (3) | $ | 20.11 | $ | 19.91 | $ | 19.63 | $ | 19.43 | $ | 18.16 | |||||||||
| Dividends declared | $ | 1,016 | $ | 957 | $ | 957 | $ | 956 | $ | 964 | |||||||||
| Dividend yield | 3.10 | % | 2.65 | % | 3.09 | % | 2.91 | % | 3.82 | % | |||||||||
| Dividend payout ratio | 24.38 | % | 38.45 | % | 51.65 | % | 32.23 | % | 92.60 | % | |||||||||
| Average shares outstanding - basic | 6,364,132 | 6,378,706 | 6,376,291 | 6,369,467 | 6,417,109 | ||||||||||||||
| Average shares outstanding - diluted | 6,378,493 | 6,397,681 | 6,385,765 | 6,388,118 | 6,429,443 | ||||||||||||||
| Period ending shares outstanding | 6,344,657 | 6,379,323 | 6,378,110 | 6,369,467 | 6,369,467 | ||||||||||||||
| Selected ratios | |||||||||||||||||||
| Return on average assets | 1.22 | % | 0.72 | % | 0.54 | % | 0.90 | % | 0.35 | % | |||||||||
| Return on average equity | 11.64 | % | 6.76 | % | 5.11 | % | 8.57 | % | 3.01 | % | |||||||||
| Return on average tangible common equity (2) (4) | 13.16 | % | 7.64 | % | 5.79 | % | 9.76 | % | 3.43 | % | |||||||||
| Efficiency (1) | 57.91 | % | 59.29 | % | 51.96 | % | 61.29 | % | 63.47 | % | |||||||||
| Equity to assets at period end | 10.40 | % | 10.33 | % | 10.41 | % | 10.47 | % | 10.93 | % | |||||||||
| Noninterest expense to average assets | 0.60 | % | 0.57 | % | 0.52 | % | 0.58 | % | 0.61 | % | |||||||||
| (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 | 2021 | 2020 | 2020 | 2020 | 2020 | ||||||||||||||
| Interest-earning assets: | |||||||||||||||||||
| Loans receivable (2) | 4.48 | % | 4.28 | % | 4.48 | % | 4.53 | % | 4.95 | % | |||||||||
| Investment securities (2) | 3.75 | % | 3.65 | % | 3.66 | % | 3.76 | % | 3.62 | % | |||||||||
| Interest-earning deposits with other banks | 0.20 | % | 0.21 | % | 0.27 | % | 0.23 | % | 1.40 | % | |||||||||
| Total interest-earning assets | 4.11 | % | 4.00 | % | 4.23 | % | 4.27 | % | 4.69 | % | |||||||||
| Deposits: | |||||||||||||||||||
| Interest-bearing demand deposits | 0.16 | % | 0.21 | % | 0.32 | % | 0.35 | % | 0.42 | % | |||||||||
| Money market deposits | 0.47 | % | 0.53 | % | 0.70 | % | 0.93 | % | 1.41 | % | |||||||||
| Savings deposits | 0.07 | % | 0.11 | % | 0.20 | % | 0.21 | % | 0.50 | % | |||||||||
| Certificates of deposit | 1.28 | % | 1.56 | % | 1.77 | % | 2.00 | % | 2.12 | % | |||||||||
| Total interest-bearing deposits | 0.53 | % | 0.70 | % | 0.93 | % | 1.11 | % | 1.39 | % | |||||||||
| Non-Deposit Funding: | |||||||||||||||||||
| Borrowings | 1.10 | % | 0.95 | % | 0.45 | % | 0.53 | % | 1.62 | % | |||||||||
| Total interest-bearing liabilities | 0.54 | % | 0.71 | % | 0.91 | % | 1.07 | % | 1.40 | % | |||||||||
| Cost of deposits | 0.40 | % | 0.54 | % | 0.72 | % | 0.85 | % | 1.13 | % | |||||||||
| Cost of funds | 0.41 | % | 0.55 | % | 0.71 | % | 0.83 | % | 1.14 | % | |||||||||
| Net interest margin (1) | 3.73 | % | 3.49 | % | 3.57 | % | 3.49 | % | 3.63 | % | |||||||||
(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 | 2021 | 2020 | 2020 | 2020 | 2020 | ||||||||||||||
| (Dollar amounts in thousands, unaudited) | |||||||||||||||||||
| Nonperforming loans (1) | $ | 8,958 | $ | 7,858 | $ | 6,690 | $ | 9,803 | $ | 8,405 | |||||||||
| Other real estate owned | 7,372 | 7,387 | 7,391 | 687 | 456 | ||||||||||||||
| Nonperforming assets | $ | 16,330 | $ | 15,245 | $ | 14,081 | $ | 10,490 | $ | 8,861 | |||||||||
| Allowance for loan losses | $ | 14,122 | $ | 13,459 | $ | 11,359 | $ | 10,210 | $ | 9,244 | |||||||||
| Allowance for loan losses/total loans | 1.28 | % | 1.22 | % | 1.01 | % | 0.92 | % | 0.93 | % | |||||||||
| Net charge-offs: | |||||||||||||||||||
| Quarter-to-date | $ | 37 | $ | - | $ | 2,851 | $ | 34 | $ | 264 | |||||||||
| Net charge-offs to average loans, annualized: | |||||||||||||||||||
| Quarter-to-date | 0.01 | % | 0.00 | % | 1.01 | % | 0.01 | % | 0.11 | % | |||||||||
| Nonperforming loans/total loans | 0.81 | % | 0.71 | % | 0.59 | % | 0.88 | % | 0.84 | % | |||||||||
| Allowance for loan losses/nonperforming loans | 157.65 | % | 171.28 | % | 169.79 | % | 104.15 | % | 109.98 | % | |||||||||
| Nonperforming assets/total assets | 1.18 | % | 1.10 | % | 1.03 | % | 0.78 | % | 0.73 | % | |||||||||
(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, | |||||||||
| 2021 | 2020 | 2020 | 2020 | 2020 | ||||||||||
| Stockholders' Equity | $ | 144,281 | $ | 143,810 | $ | 142,056 | $ | 140,695 | $ | 132,687 | ||||
| Less Goodwill and other intangibles | 16,715 | 16,795 | 16,878 | 16,961 | 17,044 | |||||||||
| Tangible Common Equity | $ | 127,566 | $ | 127,015 | $ | 125,178 | $ | 123,734 | $ | 115,643 | ||||
| Shares outstanding | 6,344,657 | 6,379,323 | 6,378,110 | 6,369,467 | 6,369,467 | |||||||||
| Tangible book value per share | $ | 20.11 | $ | 19.91 | $ | 19.63 | $ | 19.43 | $ | 18.16 | ||||
| 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, | |||||||||||||||
| 2021 | 2020 | 2020 | 2020 | 2020 | |||||||||||||||
| Average Stockholders' Equity | $ | 145,208 | $ | 146,374 | $ | 144,167 | $ | 139,212 | $ | 139,208 | |||||||||
| Less Average Goodwill and other intangibles | 16,754 | 16,836 | 16,919 | 17,002 | 17,085 | ||||||||||||||
| Average Tangible Common Equity | $ | 128,454 | $ | 129,538 | $ | 127,248 | $ | 122,210 | $ | 122,123 | |||||||||
| Net income | $ | 4,167 | $ | 2,489 | $ | 1,853 | $ | 2,966 | $ | 1,041 | |||||||||
| Return on average tangible common equity (annualized) | 13.16 | % | 7.64 | % | 5.79 | % | 9.76 | % | 3.43 | % | |||||||||
| Reconciliation of Pre-Tax Pre-Provision Income (PTPP) | ||||||||||||||
| For the Three Months Ended | ||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||
| 2021 | 2020 | 2020 | 2020 | 2020 | ||||||||||
| Net income | $ | 4,167 | $ | 2,489 | $ | 1,853 | $ | 2,966 | $ | 1,041 | ||||
| Add Income Taxes | 896 | 467 | 295 | 565 | 74 | |||||||||
| Add Provision for loan losses | 700 | 2,100 | 4,000 | 1,000 | 2,740 | |||||||||
| PTPP | $ | 5,763 | $ | 5,056 | $ | 6,148 | $ | 4,531 | $ | 3,855 | ||||
MIDDLEFIELD BANC CORP.
Average Balance Sheets
(Dollar amounts in thousands, unaudited)
| For the Three Months Ended | |||||||||||||||||||||||
| March 31, | March 31, | ||||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||
| Average | Average | Average | Average | ||||||||||||||||||||
| Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost | ||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||
| Loans receivable (3) | $ | 1,103,373 | $ | 12,167 | 4.48 | % | $ | 984,034 | $ | 12,078 | 4.95 | % | |||||||||||
| Investment securities (3) | 116,510 | 928 | 3.75 | % | 105,894 | 786 | 3.62 | % | |||||||||||||||
| Interest-earning deposits with other banks (4) | 93,709 | 47 | 0.20 | % | 41,717 | 145 | 1.40 | % | |||||||||||||||
| Total interest-earning assets | 1,313,592 | 13,142 | 4.11 | % | 1,131,645 | 13,009 | 4.69 | % | |||||||||||||||
| Noninterest-earning assets | 71,007 | 65,003 | |||||||||||||||||||||
| Total assets | $ | 1,384,599 | $ | 1,196,648 | |||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 203,047 | $ | 78 | 0.16 | % | $ | 113,691 | $ | 119 | 0.42 | % | |||||||||||
| Money market deposits | 195,275 | 228 | 0.47 | % | 158,008 | 552 | 1.41 | % | |||||||||||||||
| Savings deposits | 256,151 | 47 | 0.07 | % | 183,137 | 226 | 0.50 | % | |||||||||||||||
| Certificates of deposit | 269,493 | 852 | 1.28 | % | 373,866 | 1,968 | 2.12 | % | |||||||||||||||
| Short-term borrowings | 111 | - | 0.00 | % | 14,808 | 35 | 0.95 | % | |||||||||||||||
| Other borrowings | 14,258 | 39 | 1.11 | % | 12,703 | 76 | 2.41 | % | |||||||||||||||
| Total interest-bearing liabilities | 938,335 | 1,244 | 0.54 | % | 856,213 | 2,976 | 1.40 | % | |||||||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||||||
| Noninterest-bearing demand deposits | 295,199 | 195,411 | |||||||||||||||||||||
| Other liabilities | 5,857 | 5,816 | |||||||||||||||||||||
| Stockholders' equity | 145,208 | 139,208 | |||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,384,599 | $ | 1,196,648 | |||||||||||||||||||
| Net interest income | $ | 11,898 | $ | 10,033 | |||||||||||||||||||
| Interest rate spread (1) | 3.57 | % | 3.29 | % | |||||||||||||||||||
| Net interest margin (2) | 3.73 | % | 3.63 | % | |||||||||||||||||||
| Ratio of average interest-earning assets to | |||||||||||||||||||||||
| average interest-bearing liabilities | 139.99 | % | 132.17 | % | |||||||||||||||||||
| (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 $169 and $189 for the three months ended March 31, 2021 and 2020, respectively | |||||||||||||||||||||||
| (4) Includes dividends received on restricted stock. | |||||||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||||||
| March 31, | December 31, | ||||||||||||||||||||||
| 2021 | 2020 | ||||||||||||||||||||||
| Average | Average | Average | Average | ||||||||||||||||||||
| Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost | ||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||
| Loans receivable (3) | $ | 1,103,373 | $ | 12,167 | 4.48 | % | $ | 1,121,259 | $ | 12,041 | 4.28 | % | |||||||||||
| Investment securities (3) | 116,510 | 928 | 3.75 | % | 113,801 | 888 | 3.65 | % | |||||||||||||||
| Interest-earning deposits with other banks (4) | 93,709 | 47 | 0.20 | % | 70,803 | 38 | 0.21 | % | |||||||||||||||
| Total interest-earning assets | 1,313,592 | 13,142 | 4.11 | % | 1,305,863 | 12,967 | 4.00 | % | |||||||||||||||
| Noninterest-earning assets | 71,007 | 78,064 | |||||||||||||||||||||
| Total assets | $ | 1,384,599 | $ | 1,383,927 | |||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 203,047 | $ | 78 | 0.16 | % | $ | 186,933 | $ | 97 | 0.21 | % | |||||||||||
| Money market deposits | 195,275 | 228 | 0.47 | % | 191,771 | 255 | 0.53 | % | |||||||||||||||
| Savings deposits | 256,151 | 47 | 0.07 | % | 238,991 | 66 | 0.11 | % | |||||||||||||||
| Certificates of deposit | 269,493 | 852 | 1.28 | % | 316,293 | 1,237 | 1.56 | % | |||||||||||||||
| Short-term borrowings | 111 | - | 0.00 | % | 26 | - | 0.00 | % | |||||||||||||||
| Other borrowings | 14,258 | 39 | 1.11 | % | 17,068 | 41 | 0.96 | % | |||||||||||||||
| Total interest-bearing liabilities | 938,335 | 1,244 | 0.54 | % | 951,082 | 1,696 | 0.71 | % | |||||||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||||||
| Noninterest-bearing demand deposits | 295,199 | 281,608 | |||||||||||||||||||||
| Other liabilities | 5,857 | 4,863 | |||||||||||||||||||||
| Stockholders' equity | 145,208 | 146,374 | |||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,384,599 | $ | 1,383,927 | |||||||||||||||||||
| Net interest income | $ | 11,898 | $ | 11,271 | |||||||||||||||||||
| Interest rate spread (1) | 3.57 | % | 3.29 | % | |||||||||||||||||||
| Net interest margin (2) | 3.73 | % | 3.49 | % | |||||||||||||||||||
| Ratio of average interest-earning assets to | |||||||||||||||||||||||
| average interest-bearing liabilities | 139.99 | % | 137.30 | % | |||||||||||||||||||
| (1) Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities. | |||||||||||||||||||||||
| (2) Net interest margin represents net interest income as a percentage of average interest-earning assets. | |||||||||||||||||||||||
| (3) Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $169 and $178 for the three months ended March 31, 2021, and December 31, 2020, respectively. | |||||||||||||||||||||||
| (4) Includes dividends received on restricted stock. | |||||||||||||||||||||||