0001193125-20-013610.txt : 20200124 0001193125-20-013610.hdr.sgml : 20200124 20200124083103 ACCESSION NUMBER: 0001193125-20-013610 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20200124 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20200124 DATE AS OF CHANGE: 20200124 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MIDDLEFIELD BANC CORP CENTRAL INDEX KEY: 0000836147 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 341585111 STATE OF INCORPORATION: OH FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-36613 FILM NUMBER: 20543743 BUSINESS ADDRESS: STREET 1: 15985 E HIGH ST STREET 2: P O BOX 35 CITY: MIDDLEFILED STATE: OH ZIP: 44062-9263 BUSINESS PHONE: 4406321666 MAIL ADDRESS: STREET 1: 15985 EAST HIGH STREET STREET 2: P O BOX 35 CITY: MIDDLEFIELD STATE: OH ZIP: 44062-9263 8-K 1 d834962d8k.htm 8-K 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8 – K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

January 24, 2020

(Date of Report: Date of earliest event reported)

Middlefield Banc Corp.

(Exact name of registrant as specified in its charter)

Ohio

(State or other jurisdiction of incorporation)

001-36613

(Commission File Number)

34-1585111

(I.R.S. Employer Identification Number)

15985 East High Street

Middlefield, Ohio 44062

(Address of principal executive offices, including zip code)

(440) 632-1666

(Registrant’s telephone number, including area code)

(not applicable)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class    Trading Symbol(s)   

Name of each exchange on which

registered

Common Stock, no par value    MBCN   

The NASDAQ Stock Market, LLC

(NASDAQ Capital Market)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

ITEM 2.02    RESULTS OF OPERATIONS AND FINANCIAL CONDITION

The following information is furnished under Item 2.02. On January 24, 2020, Middlefield Banc Corp. issued a press release announcing financial results for the three month and twelve month periods ended December 31, 2019. A copy of the press release is attached hereto as Exhibit 99 and is incorporated herein by this reference.

The information contained or incorporated by reference in this current report on Form 8-K may contain forward-looking statements, including certain plans, expectations, goals, and projections, which are subject to numerous assumptions, risks, and uncertainties. Actual results could differ materially from those contained or implied by such statements for a variety of factors, including: changes in economic conditions; movements in interest rates; competitive pressures on product pricing and services; success and timing of business strategies; the nature, extent, and timing of governmental actions and reforms; and extended disruption of vital infrastructure. All forward-looking statements included in this current report on Form 8-K are based on information available at the time of the report. Middlefield Banc Corp. assumes no obligation to update any forward-looking statement.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

 

  (c)

Exhibits.

The following exhibits are furnished herewith:

EXHIBITS

 

99   January 24, 2020 press release of Middlefield Banc Corp.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

      MIDDLEFIELD BANC CORP.
Date: January 24, 2020       /s/  James R. Heslop, II                   ,
      Executive Vice President and COO
 EX-99 2 d834962dex99.htm EX-99 EX-99

Exhibit 99

 

LOGO

15985 East High Street

P. O. Box 35

Middlefield, Ohio 44062

Phone: (440) 632-1666    FAX: (440) 632-1700

www.middlefieldbank.bank

 

  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. Reports Record 2019 Full Year Earnings

MIDDLEFIELD, OHIO, January 24, 2020 ◆◆◆◆ Middlefield Banc Corp. (NASDAQ: MBCN) today reported record financial results for the twelve months ended December 31, 2019.

2019 Financial Highlights (on a year-over-year basis unless noted):

  🌑  

Net income increased 2.3% to a record $12.7 million

  🌑  

Earnings per diluted share increased 2.1% to a record $1.95 per share

  🌑  

Return on average common equity was 9.35%, compared to 9.94%

  🌑  

Return on average tangible common equity(1) was 10.72%, compared to 11.57%

  🌑  

Book value per share was up 8.5% to a record $21.45 per share

  🌑  

Tangible book value(1) per share was up 10.0% to a record $18.78 per share

  🌑  

Total net loans decreased 0.7% to $977.5 million

  🌑  

Net interest income improved 2.3% to $41.4 million

  🌑  

Total noninterest income was up 29.9% to $4.8 million

  🌑  

Noninterest expense was up only 4.5%

  🌑  

Equity to assets strengthened to 11.65%, compared to 10.28%

  🌑  

All per share data has been adjusted to reflect the November 8, 2019 two-for-one stock split

“Middlefield achieved record annual earnings, earnings per share, and book value for the year ended December 31, 2019, despite a more challenging banking landscape,” stated Thomas G. Caldwell, President and Chief Executive Officer. “During the year, we were able to successfully offset macro related pressures related to a declining rate environment and significant competition for loans and deposits, as annual noninterest income increased nearly 30%, core asset quality improved, and noninterest expenses only increased 4.5%, compared to the prior year. We continue to invest in developing new products and services for our customers, and further expanded our footprint in Central Ohio with our new Plain City branch that opened during the 2019 fourth quarter.

“During 2019, the Company repurchased 98,832 shares of our common stock, increased our quarterly cash dividend by 7.1%, and completed a two-for-one stock split to improve our trading liquidity. These actions reflect management and the board’s optimism for our future and commitment to creating value for all shareholders.

“As we look to 2020 and beyond, we expect market conditions will remain competitive. During this period, our strategy will remain focused on balancing loan growth with a conservative approach to risk. In addition, we will continue to pursue strategies aimed at diversifying sources of income, expanding our presence in Central Ohio, increasing our market share in our core Northeast Ohio markets, and investing in our platform to support our long-term growth opportunity,” concluded Mr. Caldwell.

Income Statement

For the 2019 full year, net interest income increased 2.3% to $41.4 million, compared to $40.4 million for the same period last year. The net interest margin for the 2019 twelve-month period was 3.68%, compared to 3.77% for the same period last year. Net interest income for the 2019 fourth quarter was $10.3 million, compared to $10.5 million for the 2018 fourth quarter. The net interest margin for the 2019 fourth quarter was 3.66%, compared to 3.76% for the same period of 2018.

For the 2019 full year, noninterest income increased 29.9% to $4.8 million, compared to $3.7 million for the same period last year. Noninterest income for the 2019 fourth quarter was $1.3 million, compared to $1.0 million for the 2018 fourth quarter.

For the 2019 full year, noninterest expense increased 4.5% to $30.0 million, compared to $28.7 million last year. For the 2019 fourth quarter, noninterest expense was $7.4 million, compared to $7.2 million for the same period last year.

“We have remained focused on managing risk and pricing on loans, while prudently controlling our funding costs on deposits,” said Donald L. Stacy, Chief Financial Officer. “During the 2019 fourth quarter charge-offs were higher as a result of charging off $566,000 of acquired student loans during the quarter. We believe this was a one-time issue, and as our nonperforming assets at December 31, 2019 indicate, we expect charge-offs will return to more historical levels during the 2020 first quarter. Looking at our deposits, I am encouraged by the growth we experienced in core deposits during the fourth quarter, and we ended the quarter with a loan-to-deposit ratio of 96.4% at December 31, 2019 compared to 97.6% at December 31, 2018.”

Balance Sheet

Total assets at December 31, 2019, decreased 5.3% to $1.18 billion, from $1.25 billion at December 31, 2018. Net loans at December 31, 2019, were $977.5 million, compared to $984.7 million at December 31, 2018. The 0.7% year-over-year decrease in total net loans was a result of a 14.2% decline in consumer installment loans, and a 5.7% decline in commercial real estate loans, partially offset by an 11.5% increase in real estate construction loans, a 6.8% increase in commercial and industrial loans, and a 3.1% increase in residential real estate loans.

Total deposits at December 31, 2019, were $1.02 billion, compared to $1.02 billion at December 31, 2018. The 0.5% year-over-year increase in deposits was primarily a result of higher time deposits and interest-bearing deposits. The investment portfolio, which is entirely classified as available for sale, was $105.7 million at December 31, 2019, compared with $98.3 million at December 31, 2018.

Stockholders’ Equity and Dividends

At December 31, 2019, stockholders’ equity increased 7.4% to $137.8 million, compared to $128.3 million at December 31, 2018. On a per share basis, shareholders’ equity at December 31, 2019, was a record $21.45 compared to $19.77 at the same period last year.

At December 31, 2019, tangible stockholders’ equity(1) increased 8.9% to $120.6 million, compared to $110.8 million at December 31, 2018. On a per share basis, tangible stockholders’ equity(1) was $18.78 at December 31, 2019, compared to $17.08 at December 31, 2018.

For the 2019 full year, the company declared cash dividends of $0.57 per share, compared to $0.59 per share for the same period last year. The dividend payout ratio for the 2019 twelve-month period was 28.99%. At December 31, 2019, the company had an equity to assets leverage ratio of 11.65%, compared to 10.28% at December 31, 2018.

Asset Quality

The provision for loan losses for the 2019 fourth quarter was $460,000 versus $210,000 for the same period last year. Nonperforming assets at December 31, 2019, were $8.8 million, compared to $7.8 million at December 31, 2018. Net charge-offs for the 2019 fourth quarter were $693,000, or 0.28% of average loans, annualized, compared to $276,000, or 0.11% of average loans, annualized at December 31, 2018.

The provision for loan losses for the year ended December 31, 2019 was $890,000 compared to $840,000 for the year ended December 31, 2018. For the 2019 twelve-month period, net charge-offs were $1.6 million, or 0.16% of average loans, compared to $602,000, or 0.06% of average loans for the 2018 twelve-month period. The allowance for loan losses at December 31, 2019, stood at $6.8 million, or 0.69% of total loans, compared to $7.4 million or 0.75% of total loans at December 31, 2018.

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 $1.18 billion at December 31, 2019. The bank operates 15 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 and return on average tangible equity, 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) changes in the securities markets; or (8) risk factors mentioned in the reports and registration statements Middlefield Banc Corp. files with the Securities and Exchange Commission. Middlefield Banc Corp. undertakes no obligation to release revisions to these forward-looking statements or to reflect events or circumstances after the date of this press release.

MIDDLEFIELD BANC CORP.

Consolidated Selected Financial Highlights

(Dollar amounts in thousands)

 

Balance Sheets (period end)

    December 31,
2019		   September 30,
2019		   June 30,
2019		   March 31,
2019		   December 31,
2018

ASSETS

           

Cash and due from banks

    $ 35,113     $ 118,956     $ 133,372     $ 121,045     $ 107,933  

Federal funds sold

      -       1,069       2,010       -       -  
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Cash and cash equivalents

      35,113       120,025       135,382       121,045       107,933  

Equity securities, at fair value

      710       628       660       674       616  

Investment securities available for sale, at fair value

      105,733       105,041       98,809       98,114       98,322  

Loans held for sale

      1,220       791       431       1,230       597  

Loans

      984,258       999,282       998,232       1,004,484       992,109  

Less allowance for loan and lease losses

      6,768       7,001       7,304       7,206       7,428  
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Net loans

      977,490       992,281       990,928       997,278       984,681  

Premises and equipment, net

      17,874       17,182       16,788       15,741       13,003  

Goodwill

      15,071       15,071       15,071       15,071       15,071  

Core deposit intangibles

      2,056       2,141       2,227       2,312       2,397  

Bank-owned life insurance

      16,511       16,403       16,294       16,185       16,080  

Accrued interest receivable and other assets

      10,697       11,015       11,832       13,285       9,698  
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

TOTAL ASSETS

    $ 1,182,475     $ 1,280,578     $       1,288,422     $       1,280,935     $ 1,248,398  
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

     December 31,
2019		   September 30,
2019		   June 30,
2019		   March 31,
2019		   December 31,
2018

LIABILITIES

           

Deposits:

           

Noninterest-bearing demand

    $ 191,370     $ 199,235     $ 198,817     $ 194,298     $ 203,410  

Interest-bearing demand

      107,844       107,033       94,266       107,246       92,104  

Money market

      160,826       155,419       152,885       178,668       196,685  

Savings

      192,003       182,005       194,505       184,662       222,954  

Time

      368,800       390,721       411,034       375,357       300,914  
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Total deposits

      1,020,843       1,034,413       1,051,507       1,040,231       1,016,067  

Short-term borrowings

      5,075       92,000       85,000       91,000       90,398  

Other borrowings

      12,750       12,359       12,449       11,518       8,803  

Accrued interest payable and other liabilities

      6,032       5,893       5,206       6,487       4,840  
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

TOTAL LIABILITIES

      1,044,700       1,144,665       1,154,162       1,149,236       1,120,108  
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

STOCKHOLDERS’ EQUITY *

           

Common stock, no par value; 10,000,000 shares authorized, 7,294,792 shares issued, 6,423,630 shares outstanding as of December 31, 2019

      86,617       86,617       86,590       86,437       85,925  

Retained earnings

      65,063       62,886       60,517       58,139       56,037  

Accumulated other comprehensive income (loss)

      1,842       2,157       1,377       641       (154 ) 

Treasury stock, at cost; 871,162 shares as of December 31, 2019

      (15,747 )      (15,747 )      (14,224 )      (13,518 )      (13,518 ) 
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

TOTAL STOCKHOLDERS’ EQUITY

      137,775       135,913       134,260       131,699       128,290  
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

    $ 1,182,475     $ 1,280,578     $ 1,288,422     $ 1,280,935     $ 1,248,398  
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

* All share and per share information has been adjusted for a two-for-one stock split completed on November 8, 2019

MIDDLEFIELD BANC CORP.

Consolidated Selected Financial Highlights

(Dollar amounts in thousands)

 

    For the Three Months Ended     For the Twelve Months Ended  

Statements of Income

    December 31, 
2019		   September 30,
2019		   June 30,
2019		   March 31,
2019		    December 31, 
2018		   December 31,
2019		   December 31,
2018

INTEREST AND DIVIDEND INCOME

              

Interest and fees on loans

   $ 12,392     $ 12,804     $       12,706     $       12,488     $ 12,467     $ 50,390     $ 46,576  

Interest-earning deposits in other institutions

     124       193       169       187       146       673       558  

Federal funds sold

     22       24       25       7       17       78       46  

Investment securities:

              

Taxable interest

     197       206       214       179       182       796       688  

Tax-exempt interest

     661       613       553       565       589       2,392       2,262  

Dividends on stock

     40       45       53       58       58       196       227  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Total interest and dividend income

     13,436       13,885       13,720       13,484       13,459       54,525       50,357  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

INTEREST EXPENSE

              

Deposits

     3,014       3,173       3,277       2,945       2,828       12,409       8,631  

Short-term borrowings

     34       42       79       213       78       368       842  

Other borrowings

     80       92       95       96       92       363       436  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Total interest expense

     3,128       3,307       3,451       3,254       2,998       13,140       9,909  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

NET INTEREST INCOME

     10,308       10,578       10,269       10,230       10,461       41,385       40,448  

Provision for loan losses

     460       80       110       240       210       890       840  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

     9,848       10,498       10,159       9,990       10,251       40,495       39,608  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

NONINTEREST INCOME

              

Service charges on deposit accounts

     577       571       530       508       498       2,186       1,914  

Investment securities gains on sale, net

     -           4       190       -           -           194       -      

Gain (loss) on equity securities

     82       (32 )      (14 )      58       (55 )      94       (9 ) 

Earnings on bank-owned life insurance

     108       109       109       105       110       431       428  

Gains on sale of loans

     148       128       98       59       67       433       231  

Other income

     390       325       386       402       357       1,503       1,164  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Total noninterest income

     1,305       1,105       1,299       1,132       977       4,841       3,728  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

NONINTEREST EXPENSE

              

Salaries and employee benefits

     4,049       4,272       4,078       4,124       4,065       16,523       15,749  

Occupancy expense

     580       535       496       553       465       2,164       1,933  

Equipment expense

     270       244       291       235       273       1,040       969  

Data processing costs

     614       580       549       465       446       2,208       1,806  

Ohio state franchise tax

     262       262       261       259       220       1,044       823  

Federal deposit insurance expense

     -           -           100       130       100       230       550  

Professional fees

     448       401       403       431       364       1,683       1,482  

Advertising expense

     128       202       200       203       227       733       921  

Software amortization expense

     159       182       152       145       145       638       605  

Core deposit intangible amortization

     85       86       85       85       87       341       352  

Other expense

     783       909       867       870       851       3,429       3,553  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Total noninterest expense

     7,378       7,673       7,482       7,500       7,243       30,033       28,743  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Income before income taxes

     3,775       3,930       3,976       3,622       3,985       15,303       14,593  

Income taxes

     634       661       686       611       560       2,592       2,162  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

NET INCOME

   $ 3,141     $ 3,269     $ 3,290     $ 3,011     $ 3,425     $ 12,711     $ 12,431  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

MIDDLEFIELD BANC CORP.

Consolidated Selected Financial Highlights

(Dollar amounts in thousands, except per share and share amounts)

 

    For the Three Months Ended     For the Twelve Months Ended  
    December 31,     September 30,     June 30,     March 31,     December 31,     December 31,     December 31,  
    2019     2019     2019     2019     2018     2019     2018  

 Per common share data (5)                     

              

 Net income per common share - basic

   $ 0.48     $ 0.51     $ 0.51     $ 0.46     $ 0.53     $ 1.96     $ 1.92  

 Net income per common share - diluted

   $ 0.49     $ 0.50     $ 0.50     $ 0.46     $ 0.53     $ 1.95     $ 1.91  

 Dividends declared per share

   $ 0.15     $ 0.14     $ 0.14     $ 0.14     $ 0.14     $ 0.57     $ 0.59  

 Book value per share (period end)

   $ 21.45     $ 21.16     $ 20.70     $ 20.22     $ 19.77     $ 21.45     $ 19.77  

 Tangible book value per share (period end) (2) (3)

   $ 18.78     $ 18.48     $ 18.04     $ 17.55     $ 17.08     $ 18.78     $ 17.08  

 Dividends declared

   $ 964     $ 900     $ 912     $ 909     $ 908     $ 3,685     $ 3,779  

 Dividend yield

     2.28%       2.37%       2.74%       2.76%       2.62%       2.18%       2.76%  

 Dividend payout ratio

     30.69%       27.53%       27.72%       30.19%       26.51%       28.99%       30.40%  

 Average shares outstanding - basic

     6,423,543       6,458,258       6,502,508       6,498,278       6,478,360       6,470,408       6,459,908  

 Average shares outstanding - diluted

     6,455,387       6,479,066       6,514,946       6,510,568       6,500,298       6,502,806       6,487,814  

 Period ending shares outstanding

     6,423,630       6,423,130       6,485,170       6,512,740       6,488,664       6,423,630       6,488,664  

 Selected ratios                                         

              

 Return on average assets

     1.04%       1.07%       1.09%       1.01%       1.15%       1.05%       1.09%  

 Return on average equity

     8.87%       9.41%       9.79%       9.36%       10.52%       9.35%       9.94%  

 Return on average tangible common equity (2) (4)

     10.11%       10.76%       11.23%       10.80%       12.17%       10.72%       11.57%  

 Efficiency (1)

     61.75%       63.93%       63.03%       64.30%       61.60%       63.25%       63.29%  

 Equity to assets at period end

     11.65%       10.61%       10.42%       10.28%       10.28%       11.65%       10.28%  

 Noninterest expense to average assets

     0.61%       0.64%       0.62%       0.62%       0.62%       2.49%       2.51%  

 

(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

 

(5)

All share and per share information has been adjusted for a two-for-one stock split completed on November 8, 2019

MIDDLEFIELD BANC CORP.

Consolidated Selected Financial Highlights

 

    For the Three Months Ended     For the Twelve Months Ended  
     December 31,       September 30,       June 30,       March 31,       December 31,       December 31,       December 31,   
    2019     2019     2019     2019     2018     2019     2018  

 Yields                                                     

              

 Interest-earning assets:

              

   Loans receivable (2)

     4.97%       5.09%       5.08%       5.07%       5.09%       5.06%       4.91%  

   Investment securities (2)

     3.94%       3.80%       3.79%       3.80%       3.73%       3.77%       3.67%  

   Interest-earning deposits with other banks

     1.65%       2.31%       2.21%       2.26%       2.08%       2.11%       1.90%  

 Total interest-earning assets

     4.75%       4.86%       4.86%       4.85%       4.82%       4.83%       4.68%  

 Deposits:

              

   Interest-bearing demand deposits

     0.41%       0.39%       0.36%       0.30%       0.31%       0.36%       0.23%  

   Money market deposits

     1.41%       1.43%       1.40%       1.58%       1.56%       1.46%       1.11%  

   Savings deposits

     0.62%       0.68%       0.69%       0.81%       0.85%       0.70%       0.65%  

   Certificates of deposit

     2.18%       2.18%       2.35%       2.15%       1.99%       2.22%       1.83%  

 Total interest-bearing deposits

     1.43%       1.48%       1.56%       1.46%       1.38%       1.48%       1.11%  

 Non-Deposit Funding:

              

   Borrowings

     2.52%       3.03%       2.70%       2.57%       3.54%       2.63%       2.20%  

 Total interest-bearing liabilities

     1.46%       1.51%       1.59%       1.52%       1.43%       1.52%       1.18%  

 Cost of deposits

     1.15%       1.20%       1.26%       1.17%       1.09%       1.20%       0.90%  

 Cost of funds

     1.17%       1.23%       1.29%       1.24%       1.14%       1.23%       0.97%  

 Net interest margin (1)

     3.66%       3.72%       3.65%       3.70%       3.76%       3.68%       3.77%  

 

(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 taxrate of 21%.

    For the Three Months Ended        
    December 31,   September 30,   June 30,   March 31,   December 31,        

End of Period Loan Balances                                                                                        

   2019   2019   2019   2019   2018        

(Dollar amounts in thousands)

              

Commercial and industrial

   $ 89,527     $ 85,861     $ 85,520     $ 85,756     $ 83,857      

Real estate - construction

     63,246       57,564       54,619       58,019       56,731      

Real estate - mortgage:

              

    Residential

     347,047       347,739       345,830       340,483       336,487      

    Commercial

     470,027       492,914       496,300       504,289       498,247      

Consumer installment

     14,411       15,204       15,963       15,937       16,787      
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

    

Total

   $ 984,258     $ 999,282     $ 998,232     $ 1,004,484     $ 992,109      
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

    
    December 31,   September 30,   June 30,   March 31,   December 31,        

 Asset quality data                                                                                                             

   2019   2019   2019   2019   2018        

 (Dollar amounts in thousands)

              

 Nonaccrual loans

   $ 8,689     $ 10,053     $ 10,671     $ 10,472     $ 6,595      

 90 day past due and accruing

     -       -       58       -       945      
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

    

 Nonperforming loans (3)

     8,689       10,053       10,729       10,472       7,540      

 Other real estate owned

     155       89       89       126       270      
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

    

 Nonperforming assets

   $ 8,844     $ 10,142     $ 10,818     $ 10,598     $ 7,810      
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

    

 Allowance for loan losses

   $ 6,768     $ 7,001     $ 7,304     $ 7,206     $ 7,428      

 Allowance for loan losses/total loans

     0.69%       0.70%       0.73%       0.72%       0.75%      

 Net charge-offs:

              

      Quarter-to-date

   $ 693     $ 383     $ 12     $ 462     $ 276      

      Year-to-date

     1,550       857       474       462       602      

 Net charge-offs to average loans, annualized:

              

      Quarter-to-date

     0.28%       0.15%       0.00%       0.19%       0.11%      

      Year-to-date

     0.16%       0.11%       0.10%       0.19%       0.06%      

 Nonperforming loans/total loans

     0.88%       1.01%       1.07%       1.04%       0.76%      

 Allowance for loan losses/nonperforming loans

     77.89%       69.64%       68.08%       68.81%       98.51%      

 Nonperforming assets/total assets

     0.75%       0.79%       0.84%       0.83%       0.63%      

 (3)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   For the Twelve Months Ended
 (Dollar amounts in thousands)   December 31,   September 30,   June 30,   March 31,   December 31,   December 31,   December 31,
    2019   2019   2019   2019   2018   2019   2018

 Stockholders’ Equity

   $ 137,775     $ 135,913     $ 134,260     $ 131,699     $ 128,290     $ 137,775     $ 128,290  

 Less Goodwill and other intangibles

     17,127       17,212       17,298       17,383       17,468       17,127       17,468  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

 Tangible Common Equity

   $ 120,648     $ 118,701     $ 116,962     $ 114,316     $ 110,822     $ 120,648     $ 110,822  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

 Shares outstanding

     6,423,630       6,423,130       6,485,170       6,512,740       6,488,664       6,423,630       6,488,664  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

 Tangible book value per share

   $ 18.78     $ 18.48     $ 18.04     $ 17.55     $ 17.08     $ 18.78     $ 17.08  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

 Reconciliation of Average Equity to Return on  Average Tangible Common Equity

   For the Three Months Ended   For the Twelve Months Ended
    December 31,   September 30,   June 30,   March 31,   December 31,   December 31,   December 31,
    2019   2019   2019   2019   2018   2019   2018

 Average Stockholders’ Equity

   $ 140,475     $ 137,843     $ 134,836     $ 130,450     $ 129,208     $ 135,900     $ 125,074  

 Less Average Goodwill and other intangibles

     17,169       17,254       17,339       17,422       17,510       17,296       17,641  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

 Average Tangible Common Equity

   $ 123,306     $ 120,589     $ 117,497     $ 113,028     $ 111,698     $ 118,604     $ 107,433  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

 Net income

   $ 3,141       3,269       3,290       3,011       3,425       12,711       12,431  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

 Return on average tangible common equity (annualized)

     10.11%       10.76%       11.23%       10.80%       12.17%       10.72%       11.57%  
 

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

 * All share and per share information has been adjusted for a two-for-one stock split completed on November 8, 2019

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