Middlefield Banc Corp. Reports 2024 Twelve-Month Financial Results

Rhea-AI Summary

Middlefield Banc Corp. (MBCN) reported strong financial results for Q4 2024, with earnings increasing 36.4% year-over-year to $0.60 per diluted share. The company achieved a record total loan portfolio of $1.52 billion, representing a 2.8% increase year-over-year.

Key highlights include a 26 basis point year-over-year increase in return on average assets to 1.04%, and book value growth of 2.6% to $26.08 per share. The company returned $7.5 million to shareholders through dividends and share repurchases. Total assets increased 1.7% to $1.85 billion, while deposits grew 1.3% to $1.45 billion.

Net interest income for 2024 decreased to $60.7 million from $65.2 million in 2023, with net interest margin declining to 3.52% from 3.97%. Asset quality metrics showed nonperforming assets at 1.62% of total assets, with an allowance for credit losses at 1.48% of total loans.

Positive

• Q4 earnings increased 36.4% year-over-year to $0.60 per diluted share
• Total loans grew 2.8% to record $1.52 billion
• Return on average assets improved by 26 basis points to 1.04%
• Book value increased 2.6% to $26.08 per share
• Returned $7.5 million to shareholders through dividends and buybacks

Negative

• Net interest income decreased by $4.5 million to $60.7 million in 2024
• Net interest margin declined to 3.52% from 3.97% year-over-year
• Nonperforming assets increased to $30.0 million from $10.9 million year-over-year
• Net charge-offs increased to $1.4 million compared to net recoveries of $31,000 last year

Insights

Financial Analyst

The Q4 2024 results demonstrate Middlefield's resilience in a challenging banking environment, with several noteworthy developments:

Margin and Income Dynamics: While the full-year net interest margin compressed to 3.52% from 3.97%, Q4 showed signs of stabilization at 3.56%. The bank's asset-sensitive loan portfolio, with 70% subject to repricing, positions it favorably for potential margin expansion in 2025's expected lower rate environment.

Balance Sheet Strategy: The strategic reduction in brokered deposits from $90.3M to $35.1M reflects prudent liability management. The 1.3% YoY deposit growth, driven by money market accounts, indicates successful organic funding strategies despite intense competition.

Asset Quality and Capital: While nonperforming assets increased to $30.0M, the 1.48% allowance for credit losses provides adequate coverage. The equity-to-assets ratio improved to 11.36%, demonstrating strong capital levels above regulatory requirements. The bank's $381.7M additional FHLB borrowing capacity provides ample liquidity buffer.

Commercial Real Estate Exposure: The CRE portfolio shows conservative loan-to-value ratios, particularly in multi-family (58.3% LTV) and owner-occupied segments (56.0% LTV). The diversified CRE mix across various sectors helps mitigate concentration risks.

Shareholder Returns: The combined $7.5M capital return through dividends and share repurchases, representing a meaningful yield, reflects management's confidence in the bank's capital generation capacity while maintaining strong regulatory ratios.

MIDDLEFIELD, Ohio, Jan. 23, 2025 (GLOBE NEWSWIRE) -- Middlefield Banc Corp. (NASDAQ: MBCN) today reported financial results for the twelve months ended December 31, 2024.

2024 Fourth Quarter Financial Highlights:

• Earnings increased 36.4% year-over-year to $0.60 per diluted share
• Return on average assets (annualized) increased 26 basis points year-over-year to 1.04%
• Asset quality remained stable compared to the 2024 third quarter with nonperforming assets to total assets of 1.62%

2024 Full Year Financial Highlights:

• Total loans increased 2.8% to a record $1.52 billion
• Book value increased 2.6% year-over-year to $26.08 per share at December 31, 2024
• Tangible book value⁽¹⁾ increased 3.9% year-over-year to $20.88 per share at December 31, 2024
• Returned $7.5 million back to shareholders through the Company's quarterly dividend policy and share repurchases

⁽¹⁾ See non-GAAP reconciliation under the section “GAAP to Non-GAAP Reconciliations”

Ronald L. Zimmerly, Jr., President and Chief Executive Officer, stated, “Our 2024 fourth quarter marks one of the most profitable quarters in Middlefield’s 124-year history, supported by the talents of our team and the strengths of our community banking platform. During the quarter, we experienced higher net interest income, grew non-interest income, achieved stable asset quality, and controlled operating expenses. These results produced record fourth quarter net income and a 26-basis point year-over-year expansion in our annualized return on average assets. I am proud of this performance, highlighting Middlefield’s resilience and ability to navigate a dynamic banking environment.”

“While we expect competition for deposits will continue, our loan pipeline remains robust, and our continued quarter over quarter increase in loans is indicative of strong origination activity across our Ohio markets. We believe 2025 will be another good year of profitable growth for Middlefield, reflecting our longstanding commitment to our communities, disciplined underwriting standards, and continued investments in our business,” concluded Mr. Zimmerly.

Income Statement
Net interest income for the twelve months ended December 31, 2024, decreased $4.5 million to $60.7 million, compared to $65.2 million for the same period last year. The net interest margin for the twelve months ended December 31, 2024, was 3.52%, compared to 3.97% last year. Net interest income for the 2024 fourth quarter increased $179,000 to $15.6 million, compared to $15.4 million for the 2023 fourth quarter. The net interest margin for the 2024 fourth quarter was 3.56%, compared to 3.63% for the same period of 2023.

For the twelve months ended December 31, 2024, noninterest income increased $522,000 to $7.2 million, compared to $6.7 million for the same period in 2023. Noninterest income for the 2024 fourth quarter was $1.9 million, compared to $1.6 million for the same period the previous year.

Noninterest expense for the twelve months ended December 31, 2024, was $47.5 million, compared to $48.1 million for the same period in 2023. For the 2024 fourth quarter, noninterest expense was $11.8 million, compared to $12.2 million for the 2023 fourth quarter.

Net income for the twelve months ended December 31, 2024, was $15.5 million, or $1.92 per diluted share, compared to $17.4 million, or $2.14 per diluted share, for the same period last year. Net income for the 2024 fourth quarter was $4.8 million, or $0.60 per diluted share, compared to $3.5 million, or $0.44 per diluted share, for the same period last year.

For the twelve months ended December 31, 2024, pre-tax, pre-provision net income was $20.4 million, compared to $23.8 million last year. For the 2024 fourth quarter, pre-tax, pre-provision net income was $5.7 million, compared to $4.8 million for the same period of 2023. (See non-GAAP reconciliation under the section “GAAP to Non-GAAP Reconciliations”.)

Balance Sheet
Total assets at December 31, 2024, increased 1.7% to $1.85 billion, compared to $1.82 billion at December 31, 2023. Total loans at December 31, 2024, were $1.52 billion, compared to $1.48 billion at December 31, 2023. The 2.8% year-over-year increase in total loans was primarily due to originations within the residential real estate and non-owner occupied loan segments as well as home equity lines of credit, offset by a decrease in construction and other loans due to the conversion to permanent loans. The investment securities available-for-sale portfolio was $165.8 million at December 31, 2024, compared with $170.8 million at December 31, 2023.

Total liabilities at December 31, 2024, increased 1.6% to $1.64 billion, compared to $1.62 billion at December 31, 2023. Total deposits at December 31, 2024, were $1.45 billion, compared to $1.43 billion at December 31, 2023. The 1.3% year-over-year increase in deposits was primarily due to growth in money market accounts, partially offset by declines in time deposits, noninterest-bearing demand, and savings accounts. Noninterest-bearing demand deposits were 26.1% of total deposits at December 31, 2024, compared to 28.1% at December 31, 2023. At December 31, 2024, the Company had brokered deposits of $35.1 million, compared to $90.3 million at December 31, 2023.

Michael C. Ranttila, Chief Financial Officer, stated, “The rate environment was volatile during the fourth quarter, which temporarily increased our accumulated other comprehensive loss. Against this backdrop, we also strategically let brokered deposits mature during the fourth quarter to see how the market would respond to the December 2024 Fed rate cut. Despite these impacts, our capital levels continue to expand, and at December 31, 2024, our equity to assets ratio improved year-over-year and from September 30, 2024 levels. Overall liquidity remains robust with access to the Federal Reserve Board’s discount window, cash and investments of $221.6 million, and additional borrowing capacity of $381.7 million on Federal Home Loan Bank advances at December 31, 2024.”

Middlefield's CRE portfolio included the following categories at December 31, 2024:

		Balance				Percent of				Percent of				Weighted Average
		(in thousands)				CRE Portfolio				Loan Portfolio				Loan-to-Value
Multi-Family		$	89,849				13.1	%			5.9	%			58.3	%
Owner Occupied
Real Estate and Rental and Leasing			62,647				9.2	%			4.1	%			56.0	%
Other Services (except Public Administration)			30,320				4.4	%			2.0	%			53.9	%
Manufacturing			16,617				2.4	%			1.1	%			49.0	%
Agriculture, Forestry, Fishing and Hunting			12,881				1.9	%			0.8	%			36.9	%
Accommodation and Food Services			11,272				1.6	%			0.7	%			56.5	%
Other			47,710				6.9	%			3.1	%			53.8	%
Total Owner Occupied		$	181,447				26.4	%			11.8	%
Non-Owner Occupied
Real Estate and Rental and Leasing			338,981				49.6	%			22.3	%			69.6	%
Accommodation and Food Services			40,398				5.9	%			2.7	%			54.9	%
Health Care and Social Assistance			20,144				2.9	%			1.3	%			56.7	%
Manufacturing			7,108				1.0	%			0.5	%			51.1	%
Other			5,660				1.1	%			0.4	%			73.7	%
Total Non-Owner Occupied		$	412,291				60.5	%			27.2	%
Total CRE		$	683,587				100.0	%			44.9	%

Stockholders' Equity and Dividends
At December 31, 2024, stockholders' equity was $210.6 million, compared to $205.7 million at December 31, 2023. The 2.4% year-over-year increase in stockholders' equity was primarily from higher retained earnings, partially offset by an increase in the unrealized loss on the available-for-sale investment portfolio and stock acquired under the Company's stock repurchase program. On a per-share basis, shareholders' equity at December 31, 2024, was $26.08, compared to $25.41 at December 31, 2023.

At December 31, 2024, tangible stockholders' equity⁽¹⁾ was $168.6 million, compared to $162.7 million at December 31, 2023. On a per-share basis, tangible stockholders' equity⁽¹⁾ was $20.88 at December 31, 2024, compared to $20.10 at December 31, 2023. ⁽¹⁾See non-GAAP reconciliation under the section “GAAP to Non-GAAP Reconciliations”.

For the twelve months ended December 31, 2024, the Company declared cash dividends of $0.80 per share, totaling $6.5 million.

For the twelve months ended December 31, 2024, the Company repurchased 43,858 shares of its common stock, at an average price of $24.00 per share. The repurchases occurred during the first quarter of 2024.

At December 31, 2024, the Company's equity-to-assets ratio was 11.36%, compared to 11.28% at December 31, 2023.

Asset Quality
For the twelve months ended December 31, 2024, the Company recorded a provision for credit losses of $2.0 million, versus a provision for credit losses of $3.0 million for the same period last year. For the 2024 fourth quarter, the Company recorded a recovery of credit losses of $177,000, compared to a provision for credit losses of $554,000 for the same period of 2023.

Net charge-offs were $1.4 million, or 0.10% of average loans, for the twelve months ended December 31, 2024, compared to net recoveries of $31,000, or 0.00% of average loans, for the same period last year. Net charge-offs were $151,000, or 0.04% of average loans, annualized, for the 2024 fourth quarter, compared to net recoveries of $117,000, or (0.03%) of average loans, annualized, for the same period of 2023. The higher net charge-offs were due to the partial charge-off of one loan during the 2024 third quarter.

Nonperforming assets at December 31, 2024, which consisted of nonperforming loans, were $30.0 million, compared to $10.9 million at December 31, 2023. The increase in nonperforming assets is primarily the result of a $13.5 million loan moved to nonaccrual in the 2024 third quarter, subsequent to the partial charge-off noted in the previous paragraph. The allowance for credit losses at December 31, 2024, stood at $22.4 million, or 1.48% of total loans, compared to $21.7 million, or 1.47% of total loans at December 31, 2023. The increase in the allowance for credit losses was mainly from an overall increase in total loans as well as changes in projected loss drivers, prepayment assumptions, curtailment expectations over the reasonable and supportable forecast period, and geographic footprint of unemployment data.

Mr. Ranttila continued, “With nearly 70% of our loan portfolio subject to repricing at December 31, 2024, we are cautiously optimistic we can maintain a stable net interest margin throughout 2025. In addition, credit quality remained firm during the fourth quarter, and we are well reserved with an allowance for credit losses to total loans of 1.48% at December 31, 2024. We expect stable economic activity across our Central, Western and Northeast Ohio markets will support loan demand and asset quality throughout 2025.”

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 $1.85 billion at December 31, 2024. The Bank operates 21 full-service banking centers and an LPL Financial® brokerage office serving Ada, Beachwood, Bellefontaine, Chardon, Cortland, Dublin, Garrettsville, Kenton, Mantua, Marysville, 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

NON-GAAP FINANCIAL MEASURES
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 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 following Consolidated Financial Highlights tables below.

FORWARD-LOOKING STATEMENTS
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 several 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.

Company Contact:	Investor and Media Contact:
Ronald L. Zimmerly, Jr. President and Chief Executive Officer Middlefield Banc Corp. (419) 673-1217 rzimmerly@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)

		December 31,				September 30,				June 30,				March 31,				December 31,
Balance Sheets (period end)		2024				2024				2024				2024				2023
ASSETS
Cash and due from banks		$	46,037			$	61,851			$	50,496			$	44,816			$	56,397
Federal funds sold			9,755				12,022				1,762				1,438				4,439
Cash and cash equivalents			55,792				73,873				52,258				46,254				60,836
Investment securities available for sale, at fair value			165,802				169,895				166,424				167,890				170,779
Other investments			855				895				881				907				955
Loans held for sale			-				249				-				-				-
Loans:
Commercial real estate:
Owner occupied			181,447				187,313				182,809				178,543				183,545
Non-owner occupied			412,291				407,159				385,648				398,845				401,580
Multifamily			89,849				94,798				86,951				81,691				82,506
Residential real estate			353,442				345,748				337,121				331,480				328,854
Commercial and industrial			229,034				213,172				234,702				227,433				221,508
Home equity lines of credit			143,379				137,761				131,047				129,287				127,818
Construction and other			103,608				111,550				132,530				135,716				125,105
Consumer installment			6,564				7,030				6,896				7,131				7,214
Total loans			1,519,614				1,504,531				1,497,704				1,490,126				1,478,130
Less allowance for credit losses			22,447				22,526				21,795				21,069				21,693
Net loans			1,497,167				1,482,005				1,475,909				1,469,057				1,456,437
Premises and equipment, net			20,565				20,528				20,744				21,035				21,339
Goodwill			36,356				36,356				36,356				36,356				36,356
Core deposit intangibles			5,611				5,869				6,126				6,384				6,642
Bank-owned life insurance			35,259				35,049				34,802				34,575				34,349
Accrued interest receivable and other assets			35,952				32,916				34,686				34,210				35,190
TOTAL ASSETS		$	1,853,359			$	1,857,635			$	1,828,186			$	1,816,668			$	1,822,883

		December 31,				September 30,				June 30,				March 31,				December 31,
		2024				2024				2024				2024				2023
LIABILITIES
Deposits:
Noninterest-bearing demand		$	377,875			$	390,933			$	387,024			$	390,185			$	401,384
Interest-bearing demand			208,291				218,002				206,542				209,015				205,582
Money market			414,074				376,619				355,630				318,823				274,682
Savings			197,749				199,984				192,472				196,721				210,639
Time			247,704				327,231				327,876				332,165				334,315
Total deposits			1,445,693				1,512,769				1,469,544				1,446,909				1,426,602
Federal Home Loan Bank advances			172,400				106,000				125,000				137,000				163,000
Other borrowings			11,660				11,711				11,762				11,812				11,862
Accrued interest payable and other liabilities			13,044				16,450				15,092				15,372				15,738
TOTAL LIABILITIES			1,642,797				1,646,930				1,621,398				1,611,093				1,617,202
STOCKHOLDERS' EQUITY
Common stock, no par value; 25,000,000 shares authorized, 9,953,018
shares issued, 8,073,708 shares outstanding as of December 31, 2024			161,999				161,916				161,823				161,823				161,388
Additional paid-in capital			246				108				-				-				-
Retained earnings			109,299				106,067				105,342				102,791				100,237
Accumulated other comprehensive loss			(20,073	)			(16,477	)			(19,468	)			(18,130	)			(16,090	)
Treasury stock, at cost; 1,879,310 shares as of December 31, 2024			(40,909	)			(40,909	)			(40,909	)			(40,909	)			(39,854	)
TOTAL STOCKHOLDERS' EQUITY			210,562				210,705				206,788				205,575				205,681
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	1,853,359			$	1,857,635			$	1,828,186			$	1,816,668			$	1,822,883

MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(Dollar amounts in thousands, unaudited)

		For the Three Months Ended																				For the Twelve Months Ended
		December 31,				September 30,				June 30,				March 31,				December 31,				December 31,				December 31,
Statements of Income		2024				2024				2024				2024				2023				2024				2023
INTEREST AND DIVIDEND INCOME
Interest and fees on loans		$	23,308			$	23,441			$	23,422			$	22,395			$	22,027			$	92,566			$	81,963
Interest-earning deposits in other institutions			320				348				386				437				370				1,491				1,289
Federal funds sold			151				143				122				152				94				568				771
Investment securities:
Taxable interest			528				528				505				467				479				2,028				1,893
Tax-exempt interest			961				962				966				972				976				3,861				3,914
Dividends on stock			170				191				198				189				144				748				471
Total interest and dividend income			25,438				25,613				25,599				24,612				24,090				101,262				90,301
INTEREST EXPENSE
Deposits			8,582				8,792				8,423				7,466				6,522				33,263				18,995
Short-term borrowings			1,128				1,575				1,920				1,993				2,013				6,616				5,386
Other borrowings			173				173				173				184				179				703				717
Total interest expense			9,883				10,540				10,516				9,643				8,714				40,582				25,098
NET INTEREST INCOME			15,555				15,073				15,083				14,969				15,376				60,680				65,203
Provision (Recovery of) for credit losses			(177	)			2,234				87				(136	)			554				2,008				3,002
NET INTEREST INCOME AFTER PROVISION
(RECOVERY OF) FOR CREDIT LOSSES			15,732				12,839				14,996				15,105				14,822				58,672				62,201
NONINTEREST INCOME
Service charges on deposit accounts			1,068				959				971				909				997				3,907				3,878
Gain (Loss) on equity securities			56				14				(27	)			(52	)			(4	)			(9	)			(161	)
Loss on other real estate owned			-				-				-				-				(172	)			-				(170	)
Earnings on bank-owned life insurance			230				246				227				227				196				930				823
Gain on sale of loans			64				56				69				10				23				199				97
Revenue from investment services			237				206				269				204				193				916				743
Gross rental income			1				-				-				67				132				68				421
Other income			258				262				251				431				237				1,202				1,060
Total noninterest income			1,914				1,743				1,760				1,796				1,602				7,213				6,691
NONINTEREST EXPENSE
Salaries and employee benefits			5,996				6,201				6,111				6,333				6,646				24,641				24,511
Occupancy expense			596				627				601				552				512				2,376				2,566
Equipment expense			221				203				261				240				273				925				1,241
Data processing costs			1,174				1,214				1,135				1,217				1,348				4,740				4,764
Ohio state franchise tax			390				399				397				397				397				1,583				1,578
Federal deposit insurance expense			293				255				256				251				285				1,055				861
Professional fees			611				539				557				558				660				2,265				2,293
Advertising expense			371				283				508				419				162				1,581				1,477
Software amortization expense			83				74				21				22				22				200				95
Core deposit intangible amortization			258				257				258				258				264				1,031				1,059
Gross other real estate owned expenses			-				-				-				99				120				99				510
Merger-related costs			-				-				-				-				-				-				473
Other expense			1,810				1,819				1,797				1,619				1,483				7,045				6,709
Total noninterest expense			11,803				11,871				11,902				11,965				12,172				47,541				48,137
Income before income taxes			5,843				2,711				4,854				4,936				4,252				18,344				20,755
Income taxes			995				371				690				769				709				2,825				3,387
NET INCOME		$	4,848			$	2,340			$	4,164			$	4,167			$	3,543			$	15,519			$	17,368
PTPP (1)		$	5,666			$	4,945			$	4,941			$	4,800			$	4,806			$	20,352			$	23,757

MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(Dollar amounts in thousands, except per share and share amounts, unaudited)

		For the Three Months Ended																				For the Twelve Months Ended
		December 31,				September 30,				June 30,				March 31,				December 31,				December 31,				December 31,
		2024				2024				2024				2024				2023				2024				2023
Per common share data
Net income per common share - basic		$	0.60			$	0.29			$	0.52			$	0.52			$	0.44			$	1.93			$	2.14
Net income per common share - diluted		$	0.60			$	0.29			$	0.52			$	0.51			$	0.44			$	1.92			$	2.14
Dividends declared per share		$	0.20			$	0.20			$	0.20			$	0.20			$	0.25			$	0.80			$	0.85
Book value per share (period end)		$	26.08			$	26.11			$	25.63			$	25.48			$	25.41			$	26.08			$	25.41
Tangible book value per share (period end) (1) (2)		$	20.88			$	20.87			$	20.37			$	20.18			$	20.10			$	20.88			$	20.10
Dividends declared		$	1,616			$	1,615			$	1,613			$	1,613			$	2,023			$	6,457			$	6,864
Dividend yield			2.84	%			2.76	%			3.34	%			3.37	%			3.06	%			2.85	%			2.63	%
Dividend payout ratio			33.33	%			69.02	%			38.74	%			38.71	%			57.10	%			41.61	%			39.52	%
Average shares outstanding - basic			8,071,905				8,071,032				8,067,144				8,091,203				8,093,478				8,075,300				8,103,230
Average shares outstanding - diluted			8,092,357				8,086,872				8,072,499				8,096,317				8,116,261				8,086,098				8,126,013
Period ending shares outstanding			8,073,708				8,071,032				8,067,144				8,067,144				8,095,252				8,073,708				8,095,252
Selected ratios
Return on average assets (Annualized)			1.04	%			0.50	%			0.91	%			0.92	%			0.78	%			0.84	%			0.99	%
Return on average equity (Annualized)			9.19	%			4.45	%			8.15	%			8.16	%			7.13	%			7.48	%			8.83	%
Return on average tangible common equity (1) (3)			11.50	%			5.58	%			10.29	%			10.30	%			9.11	%			9.41	%			11.20	%
Efficiency (4)			65.05	%			67.93	%			67.97	%			68.68	%			68.99	%			67.38	%			64.49	%
Equity to assets at period end			11.36	%			11.34	%			11.31	%			11.32	%			11.28	%			11.36	%			11.28	%
Noninterest expense to average assets			0.63	%			0.66	%			0.64	%			0.66	%			0.68	%			2.58	%			2.74	%

(1) See section “GAAP to Non-GAAP Reconciliations” for the reconciliation of GAAP performance measures to non-GAAP measures.

(2) Calculated by dividing tangible common equity by shares outstanding.

(3) Calculated by dividing annualized net income for each period by average tangible common equity.

(4) 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.

		For the Three Months Ended																				For the Twelve Months Ended
		December 31,				September 30,				June 30,				March 31,				December 31,				December 31,				December 31,
Yields		2024				2024				2024				2024				2023				2024				2023
Interest-earning assets:
Loans receivable (1)			6.12	%			6.19	%			6.27	%			6.11	%			6.01	%			6.17	%			5.82	%
Investment securities (1) (2)			3.63	%			3.62	%			3.59	%			3.52	%			3.52	%			3.61	%			3.53	%
Interest-earning deposits with other banks			4.23	%			4.27	%			4.59	%			4.88	%			3.71	%			4.49	%			3.82	%
Total interest-earning assets			5.78	%			5.84	%			5.92	%			5.77	%			5.64	%			5.83	%			5.47	%
Deposits:
Interest-bearing demand deposits			2.07	%			2.16	%			1.93	%			1.86	%			1.67	%			2.01	%			1.32	%
Money market deposits			3.81	%			3.93	%			3.95	%			3.81	%			3.58	%			3.88	%			2.65	%
Savings deposits			0.75	%			0.71	%			0.64	%			0.58	%			0.59	%			0.67	%			0.76	%
Certificates of deposit			4.21	%			4.49	%			4.57	%			4.06	%			3.68	%			4.33	%			2.83	%
Total interest-bearing deposits			3.05	%			3.17	%			3.15	%			2.88	%			2.56	%			3.06	%			1.92	%
Non-Deposit Funding:
Borrowings			4.93	%			5.54	%			5.60	%			5.61	%			5.57	%			5.45	%			5.40	%
Total interest-bearing liabilities			3.21	%			3.41	%			3.45	%			3.23	%			2.96	%			3.33	%			2.28	%
Cost of deposits			2.24	%			2.33	%			2.30	%			2.08	%			1.81	%			2.24	%			1.32	%
Cost of funds			2.41	%			2.58	%			2.61	%			2.42	%			2.18	%			2.51	%			1.62	%
Net interest margin (3)			3.56	%			3.46	%			3.51	%			3.54	%			3.63	%			3.52	%			3.97	%

(1) Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were determined using an effective tax rate of 21%.

(2) Yield is calculated on the basis of amortized cost.

(3) Net interest margin represents net interest income as a percentage of average interest-earning assets.

MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(unaudited)

		For the Three Months Ended
		December 31,				September 30,				June 30,				March 31,				December 31,
Asset quality data		2024				2024				2024				2024				2023
(Dollar amounts in thousands, unaudited)
Nonperforming assets (1)		$	29,983			$	30,078			$	15,961			$	10,831			$	10,877
Allowance for credit losses			22,447			$	22,526			$	21,795			$	21,069			$	21,693
Allowance for credit losses/total loans			1.48	%			1.50	%			1.46	%			1.41	%			1.47	%
Net charge-offs (recoveries):
Quarter-to-date		$	151			$	1,382			$	(29	)		$	(68	)		$	(117	)
Year-to-date			1,436				1,285				(97	)			(68	)			(31	)
Net charge-offs (recoveries) to average loans, annualized:
Quarter-to-date			0.04	%			0.36	%			(0.01	%)			(0.02	%)			(0.03	%)
Year-to-date			0.10	%			0.11	%			(0.01	%)			(0.02	%)			0.00	%
Nonperforming loans/total loans			1.97	%			2.00	%			1.07	%			0.73	%			0.74	%
Allowance for credit losses/nonperforming loans			74.86	%			74.89	%			136.55	%			194.52	%			199.44	%
Nonperforming assets/total assets			1.62	%			1.62	%			0.87	%			0.60	%			0.60	%

(1) Nonperforming assets consist of nonperforming loans.

MIDDLEFIELD BANC CORP.
GAAP to Non-GAAP Reconciliations

Reconciliation of Common Stockholders' Equity to Tangible Common Equity		For the Three Months Ended
(Dollar amounts in thousands, except per share and share amounts, unaudited)		December 31,				September 30,				June 30,				March 31,				December 31,
		2024				2024				2024				2024				2023
Stockholders' equity		$	210,562			$	210,705			$	206,788			$	205,575			$	205,681
Less goodwill and other intangibles			41,967				42,225				42,482				42,740				42,998
Tangible common equity		$	168,595			$	168,480			$	164,306			$	162,835			$	162,683
Shares outstanding			8,071,905				8,071,032				8,067,144				8,067,144				8,095,252
Tangible book value per share		$	20.88			$	20.87			$	20.37			$	20.18			$	20.10

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,
		2024				2024				2024				2024				2023				2024				2023
Average stockholders' equity		$	209,864			$	209,096			$	205,379			$	205,342			$	197,208			$	207,367			$	196,602
Less average goodwill and other intangibles			42,092				42,350				42,607				42,654				42,972				42,479				41,507
Average tangible common equity		$	167,772			$	166,746			$	162,772			$	162,688			$	154,236			$	164,888			$	155,095
Net income		$	4,848			$	2,340			$	4,164			$	4,167			$	3,543			$	15,519			$	17,368
Return on average tangible common equity (annualized)			11.50	%			5.58	%			10.29	%			10.30	%			9.11	%			9.41	%			11.20	%

Reconciliation of Pre-Tax Pre-Provision Income (PTPP)		For the Three Months Ended																				For the Twelve Months Ended
		December 31,				September 30,				June 30,				March 31,				December 31,				December 31,				December 31,
		2024				2024				2024				2024				2023				2024				2023
Net income		$	4,848			$	2,340			$	4,164			$	4,167			$	3,543			$	15,519			$	17,368
Add income taxes			995				371				690				769				709				2,825				3,387
Add provision for (recovery of) credit losses			(177	)			2,234				87				(136	)			554				2,008				3,002
PTPP		$	5,666			$	4,945			$	4,941			$	4,800			$	4,806			$	20,352			$	23,757

MIDDLEFIELD BANC CORP.
Average Balance Sheets
(Dollar amounts in thousands, unaudited)

		For the Three Months Ended
		December 31,												December 31,
		2024												2023
		Average								Average				Average								Average
		Balance				Interest				Yield/Cost				Balance				Interest				Yield/Cost
Interest-earning assets:
Loans receivable (1)		$	1,517,051			$	23,308				6.12	%		$	1,454,688			$	22,027				6.01	%
Investment securities (1) (2)			191,390				1,489				3.63	%			193,289				1,455				3.52	%
Interest-earning deposits with other banks (3)			60,241				641				4.23	%			64,989				608				3.71	%
Total interest-earning assets			1,768,682				25,438				5.78	%			1,712,966				24,090				5.64	%
Noninterest-earning assets			88,205												82,364
Total assets		$	1,856,887											$	1,795,330
Interest-bearing liabilities:
Interest-bearing demand deposits		$	216,492			$	1,126				2.07	%		$	222,517			$	935				1.67	%
Money market deposits			393,298				3,768				3.81	%			276,354				2,493				3.58	%
Savings deposits			197,257				373				0.75	%			211,997				317				0.59	%
Certificates of deposit			313,582				3,315				4.21	%			299,427				2,777				3.68	%
Short-term borrowings			93,200				1,128				4.81	%			144,344				2,013				5.53	%
Other borrowings			11,690				173				5.89	%			11,890				179				5.97	%
Total interest-bearing liabilities			1,225,519				9,883				3.21	%			1,166,529				8,714				2.96	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits			404,428												422,151
Other liabilities			17,076												9,442
Stockholders' equity			209,864												197,208
Total liabilities and stockholders' equity		$	1,856,887											$	1,795,330
Net interest income						$	15,555											$	15,376
Interest rate spread (4)											2.57	%											2.68	%
Net interest margin 5)											3.56	%											3.63	%
Ratio of average interest-earning assets to average interest-bearing liabilities											144.32	%											146.84	%

(1) Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $280 and $282 for the three months ended December 31, 2024 and 2023, respectively.

(2) Yield is calculated on the basis of amortized cost.

(3) Includes dividends received on restricted stock.

(4) Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.

(5) Net interest margin represents net interest income as a percentage of average interest-earning assets.

		For the Three Months Ended
		December 31,												September 30,
		2024												2024
		Average								Average				Average								Average
		Balance				Interest				Yield/Cost				Balance				Interest				Yield/Cost
Interest-earning assets:
Loans receivable (1)		$	1,517,051			$	23,308				6.12	%		$	1,507,518			$	23,441				6.19	%
Investment securities (1) (2)			191,390				1,489				3.63	%			191,748				1,490				3.62	%
Interest-earning deposits with other banks (3)			60,241				641				4.23	%			63,580				682				4.27	%
Total interest-earning assets			1,768,682				25,438				5.78	%			1,762,846				25,613				5.84	%
Noninterest-earning assets			88,205												88,644
Total assets		$	1,856,887											$	1,851,490
Interest-bearing liabilities:
Interest-bearing demand deposits		$	216,492			$	1,126				2.07	%		$	217,124			$	1,181				2.16	%
Money market deposits			393,298				3,768				3.81	%			362,545				3,583				3.93	%
Savings deposits			197,257				373				0.75	%			198,775				357				0.71	%
Certificates of deposit			313,582				3,315				4.21	%			325,240				3,671				4.49	%
Short-term borrowings			93,200				1,128				4.81	%			113,812				1,575				5.51	%
Other borrowings			11,690				173				5.89	%			11,739				173				5.86	%
Total interest-bearing liabilities			1,225,519				9,883				3.21	%			1,229,235				10,540				3.41	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits			404,428												396,456
Other liabilities			17,076												16,703
Stockholders' equity			209,864												209,096
Total liabilities and stockholders' equity		$	1,856,887											$	1,851,490
Net interest income						$	15,555											$	15,073
Interest rate spread (4)											2.57	%											2.43	%
Net interest margin (5)											3.56	%											3.46	%
Ratio of average interest-earning assets to average interest-bearing liabilities											144.32	%											143.41	%

(1) Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $280 and $281 for the three months ended December 31, 2024 and September 30, 2024 respectively.

(2) Yield is calculated on the basis of amortized cost.

(3) Includes dividends received on restricted stock.

(4) Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.

(5) Net interest margin represents net interest income as a percentage of average interest-earning assets.

		For the Twelve Months Ended
		December 31,												December 31,
		2024												2023
		Average								Average				Average								Average
		Balance				Interest				Yield/Cost				Balance				Interest				Yield/Cost
Interest-earning assets:
Loans receivable (1)		$	1,501,138			$	92,566				6.17	%		$	1,410,251			$	81,963				5.82	%
Investment securities (1) (2)			191,685				5,889				3.61	%			193,816				5,807				3.53	%
Interest-earning deposits with other banks (3)			62,463				2,807				4.49	%			66,295				2,531				3.82	%
Total interest-earning assets			1,755,286				101,262				5.83	%			1,670,362				90,301				5.47	%
Noninterest-earning assets			88,358												88,553
Total assets		$	1,843,644											$	1,758,915
Interest-bearing liabilities:
Interest-bearing demand deposits		$	213,647			$	4,293				2.01	%		$	217,662			$	2,870				1.32	%
Money market deposits			348,065				13,498				3.88	%			244,765				6,498				2.65	%
Savings deposits			197,422				1,325				0.67	%			253,962				1,925				0.76	%
Certificates of deposit			326,559				14,147				4.33	%			272,443				7,702				2.83	%
Short-term borrowings			122,506				6,616				5.40	%			101,088				5,386				5.33	%
Other borrowings			11,765				703				5.98	%			11,965				717				5.99	%
Total interest-bearing liabilities			1,219,964				40,582				3.33	%			1,101,885				25,098				2.28	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits			399,430												449,102
Other liabilities			16,883												11,326
Stockholders' equity			207,367												196,602
Total liabilities and stockholders' equity		$	1,843,644											$	1,758,915
Net interest income						$	60,680											$	65,203
Interest rate spread (4)											2.50	%											3.19	%
Net interest margin (5)											3.52	%											3.97	%
Ratio of average interest-earning assets to average interest-bearing liabilities											143.88	%											151.59	%

(1) Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $1,131 and $1,106 for the twelve months ended December 31, 2024 and 2023, respectively.

(2) Yield is calculated on the basis of amortized cost.

(3) Includes dividends received on restricted stock.

(4) Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.

(5) Net interest margin represents net interest income as a percentage of average interest-earning assets.

FAQ

What was MBCN's earnings per share for Q4 2024?

MBCN reported earnings of $0.60 per diluted share for Q4 2024, representing a 36.4% increase from $0.44 per share in Q4 2023.

How much did MBCN's total loans grow in 2024?

MBCN's total loans increased by 2.8% to reach a record $1.52 billion by December 31, 2024.

What was MBCN's dividend payout for 2024?

MBCN declared cash dividends of $0.80 per share in 2024, totaling $6.5 million.

How did MBCN's asset quality metrics change in 2024?

Nonperforming assets increased to $30.0 million from $10.9 million year-over-year, with an allowance for credit losses at 1.48% of total loans as of December 31, 2024.

What was MBCN's share repurchase activity in 2024?

MBCN repurchased 43,858 shares at an average price of $24.00 per share during the first quarter of 2024.