Note 10 - Segment Reporting

3 Months Ended

Mar. 31, 2025

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 10 - SEGMENT REPORTING

The Company has one business segment: Bank Segment. The Bank Segment provides customers with a broad range of banking services, including various deposit and lending products to consumer and commercial customers. The Company’s chief operating decision maker (CODM) is the Chief Executive Officer.

The following table shows selected financial data for the Bank Segment for the three months ended March 31, 2025, and 2024. The accounting policies of the segment are the same as those followed by the Company. The information is derived from the internal financial reporting records that are used to monitor and manage the Company's financial performance. The segment expense categories are based on the information regularly provided to the CODM and are considered significant to the segment’s operations. The Bank Segment excludes the income, expenses, and total assets of the parent company, Middlefield Banc Corp, and the parent company’s nonbank asset resolution subsidiary, EMORECO, Inc., which are shown as reconciling items in the following table. There is no authoritative guidance for management accounting equivalent to GAAP, and therefore, the financial results of our business segment are not necessarily comparable with similar information presented by other companies. 

	For the Three Months Ended March 31,
	2025							2024
			Reconciling								Reconciling
(Dollar amounts in thousands)	Bank		Items			Total		Bank			Items			Total
Net interest income	$	16,215	$	(117	)	$	16,098	$	15,126		$	(157	)	$	14,969
Noninterest income		1,969		(25	)		1,944		1,838			(42	)		1,796
Total revenue		18,184		(142	)		18,042		16,964			(199	)		16,765
Provision for (recovery of) credit losses		95		-			95		(136	)		-			(136	)
Salaries and employee benefits		6,067		490			6,557		6,015			318			6,333
Occupancy expenses		687		-			687		552			-			552
Data processing costs		1,271		-			1,271		1,217			-			1,217
Other noninterest expense (1)		3,191		487			3,678		3,204			659			3,863
Income tax provision (benefit)		1,159		(235	)		924		1,016			(247	)		769
Net income	$	5,714	$	(884	)	$	4,830	$	5,096		$	(929	)	$	4,167
Total assets	$	1,886,606	$	1,750		$	1,888,356	$	1,814,726		$	1,942		$	1,816,668

⁽¹⁾ Includes expenses that are in the reported measure of net income but not specifically provided to the CODM. Other noninterest expense is composed of expenses such as equipment expense, Ohio state franchise tax, professional fees, advertising expense, and other expenses.

The CODM utilizes net income as the primary measure to allocate resources during the annual budget process. This measure is used by CODM to evaluate the performance of the business segment, with a focus on net interest income, provision for credit losses, noninterest income, and noninterest expense. Net income is compared to both budgeted and comparative historical amounts on a monthly basis. Drivers of any significant variations from budget are assessed. The measure of segment assets is reported as total assets.