Middlefield Banc Corp. Reports 2022 First Quarter Financial Results

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

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