Middlefield Banc Corp. Reports 2025 Three-Month Financial Results

Rhea-AI Summary

Middlefield Banc Corp. (NASDAQ: MBCN) reported strong financial results for Q1 2025, with earnings per share increasing 17.6% to $0.60. The company achieved notable growth metrics including:

• Net income expanded 15.9% to $4.8 million
• Net interest margin improved by 15 basis points to 3.69%
• Total loans grew 4% to $1.55 billion
• Total deposits increased 6.4% to $1.54 billion
• Asset quality improved with nonperforming assets to total assets decreasing to 1.56%

The bank increased its quarterly dividend by 5% to $0.21 per share and reported tangible book value per share of $21.29, representing a 5.5% increase. The company maintains strong liquidity with $346.9 million in additional borrowing capacity while focusing on infrastructure upgrades and technology investments.

Positive

• Net income increased 15.9% YoY to $4.8 million
• EPS grew 17.6% to $0.60 per diluted share
• Net interest margin expanded by 15 basis points to 3.69%
• Total loans increased 4% YoY to $1.55 billion
• Total deposits grew 6.4% YoY to $1.54 billion
• Quarterly dividend increased 5% to $0.21 per share
• Tangible book value per share increased 5.5% to $21.29

Negative

• Nonperforming loans increased significantly to $29.6 million from $10.8 million YoY
• Noninterest-bearing deposits decreased to 24.0% of total deposits from 27.0% YoY
• Provision for credit losses of $95,000 compared to a recovery of $136,000 in previous year

Insights

Financial Analyst

MBCN delivered strong Q1 results with 17.6% EPS growth, expanded margins, and increased dividends while maintaining solid asset quality.

Middlefield Banc Corp's Q1 2025 financial results demonstrate robust performance across key metrics. The 17.6% year-over-year increase in earnings per share to $0.60 significantly outpaces regional banking peers. Net income grew 15.9% to $4.8 million, driving a meaningful improvement in return on average assets to 1.04%.

The net interest margin expansion of 15 basis points to 3.69% is particularly impressive in the current banking environment. This margin improvement directly contributed to the $1.1 million increase in net interest income, which reached $16.1 million for the quarter.

Balance sheet trends show controlled, quality growth with total loans increasing 4.0% year-over-year to a record $1.55 billion, primarily from residential real estate and home equity products. The 6.4% deposit growth to $1.54 billion demonstrates strong funding capabilities, though the composition shift toward interest-bearing accounts (noninterest-bearing deposits decreased from 27.0% to 24.0% of total deposits) bears watching for potential impact on funding costs.

Asset quality metrics show improvement from the previous quarter with nonperforming assets to total assets decreasing 6 basis points to 1.56%. The $209,000 in net recoveries during the quarter further reinforces the bank's credit management practices. Loan loss reserves remain strong at 1.44% of total loans.

The 5% dividend increase to $0.21 per share signals management confidence in sustained performance, while the 5.5% growth in tangible book value per share to $21.29 creates meaningful shareholder value. Management's focus on technology infrastructure improvements positions the bank well for continued operational efficiency gains.

MIDDLEFIELD, Ohio, April 24, 2025 (GLOBE NEWSWIRE) -- Middlefield Banc Corp. (NASDAQ: MBCN) today reported financial results for the three months ended March 31, 2025.

2025 Three-Month Financial Highlights (on a year-over-year basis):

	●	Earnings per share increased 17.6% year-over-year to $0.60 per diluted share
	●	Net interest margin expanded 15 basis points to 3.69%
	●	Return on average assets (annualized) increased 12 basis points year-over-year to 1.04%
	●	Asset quality improved from the 2024 fourth quarter with nonperforming assets to total assets decreasing by 6 basis points to 1.56%
	●	First quarter dividend payment increased 5% to $0.21 per share

“The first quarter of 2025 was a strong period of growth, profitability and value creation for Middlefield,” stated Ronald L. Zimmerly, Jr., President and Chief Executive Officer. “Total loans increased by 4% year-over-year to a record $1.55 billion, driven by stable economic trends within our Ohio markets, the strength of our balance sheet, and the continued execution of our strategic initiatives.  The 15-basis point expansion in our net interest margin is encouraging, reflecting our disciplined approach to pricing and ongoing efforts to reduce our cost of funds.  As a result, net income expanded by 15.9% year-over-year to $4.8 million, delivering a strong return on average assets of 1.04% and supporting a 5.5% increase in tangible book value per share⁽¹⁾, which reached $21.29 as of March 31, 2025.” ⁽¹⁾ See non-GAAP reconciliation under the section “GAAP to Non-GAAP Reconciliations”.

“During the quarter, we made significant upgrades to our infrastructure to support our multi-year technology road map. Additional investments in our physical footprint and back-office capabilities are planned throughout the year as we continue to strengthen Middlefield’s platform and support our long-term growth. We believe 2025 will be another good year of profitable expansion, reflecting our commitment to disciplined underwriting, community banking values, and ongoing reinvestment in the business,” concluded Mr. Zimmerly.

Income Statement
Net interest income for the three months ended March 31, 2025, increased $1.1 million to $16.1 million, compared to $15.0 million for the same period last year. The increase was driven by strong loan growth and the impact of rate cuts on our short-term borrowings. The net interest margin for the three months ended March 31, 2025, was 3.69%, compared to 3.54% last year. 

For the three months ended March 31, 2025, noninterest income increased $148,000 to $1.9 million, compared to $1.8 million for the same period in 2024.

Noninterest expense for the three months ended March 31, 2025, was $12.2 million, compared to $12.0 million for the same period in 2024. 

Net income for the three months ended March 31, 2025, was $4.8 million, or $0.60 per diluted share, compared to $4.2 million, or $0.51 per diluted share, for the same period last year. 

For the three months ended March 31, 2025, pre-tax, pre-provision net income was $5.8 million, compared to $4.8 million for the same period last year. (See non-GAAP reconciliation under the section “GAAP to Non-GAAP Reconciliations”.)

Balance Sheet
Total assets at March 31, 2025, increased 3.9% to $1.89 billion, compared to $1.82 billion at March 31, 2024. Total loans at March 31, 2025, were $1.55 billion, compared to $1.49 billion at March 31, 2024. The 4.0% year-over-year increase in total loans was primarily due to higher residential real estate loans, home equity lines of credit, and non-owner occupied loans, partially offset by a reduction in construction and other loans.

The investment securities available-for-sale portfolio was $165.0 million at March 31, 2025, compared with $167.9 million at March 31, 2024.

Total liabilities at March 31, 2025, increased 3.9% to $1.67 billion, compared to $1.61 billion at March 31, 2024. Total deposits at March 31, 2025, were $1.54 billion, compared to $1.45 billion at March 31, 2024. The 6.4% year-over-year increase in deposits was primarily due to growth in money market and interest-bearing demand deposits, partially offset by declines in time and noninterest-bearing demand deposit accounts. Noninterest-bearing demand deposits were 24.0% of total deposits at March 31, 2025, compared to 27.0% at March 31, 2024. At March 31, 2025, the Company had brokered deposits of $92.4 million, compared to $90.4 million at March 31, 2024.

Michael C. Ranttila, Chief Financial Officer, stated, “We remain focused on proactively managing our funding sources to support loan growth, while optimizing our cost of funds. At March 31, 2025, we reduced our balance of Federal Home Loan Bank advances by $62.4 million from December 31, 2024, and ended the first quarter with $346.9 million in additional borrowing capacity. The combination of high levels of potentially liquid assets, cash flows from operations, and additional borrowing capacity continues to provide us with excellent liquidity levels to support our long-term growth strategies and our legacy of returning excess capital to shareholders.”

Middlefield's CRE portfolio included the following categories at March 31, 2025:

						Percent of				Percent of				Weighted Average
(Dollar amounts in thousands)		Balance				CRE Portfolio				Loan Portfolio				Loan-to-Value
Multi-Family		$	88,737				12.9	%			5.7	%			61.3	%
Owner Occupied
Real Estate and Rental and Leasing			61,835				9.0	%			4.0	%			55.7	%
Other Services (except Public Administration)			32,815				4.8	%			2.1	%			54.1	%
Manufacturing			18,397				2.7	%			1.2	%			44.7	%
Agriculture, Forestry, Fishing and Hunting			12,628				1.8	%			0.8	%			36.4	%
Other			59,737				8.6	%			3.9	%			54.0	%
Total Owner Occupied		$	185,412				26.9	%			12.0	%
Non-Owner Occupied
Real Estate and Rental and Leasing			343,169				49.9	%			22.1	%			55.5	%
Accommodation and Food Services			40,039				5.8	%			2.6	%			55.9	%
Health Care and Social Assistance			19,328				2.8	%			1.2	%			65.5	%
Manufacturing			7,428				1.1	%			0.5	%			49.5	%
Other			3,657				0.6	%			0.2	%			85.4	%
Total Non-Owner Occupied		$	413,621				60.2	%			26.6	%
Total CRE		$	687,770				100.0	%			44.3	%

Stockholders' Equity and Dividends
At March 31, 2025, stockholders' equity was $213.8 million, compared to $205.6 million at March 31, 2024. The 4.0% year-over-year increase in stockholders' equity was primarily from higher retained earnings, partially offset by an increase in the unrealized losses on the available-for-sale investment portfolio. On a per-share basis, shareholders' equity at March 31, 2025, was $26.46, compared to $25.48 at March 31, 2024.

At March 31, 2025, tangible stockholders' equity⁽¹⁾ was $172.1 million, compared to $162.8 million at March 31, 2024. On a per-share basis, tangible stockholders' equity⁽¹⁾ was $21.29 at March 31, 2025, compared to $20.18 at March 31, 2024. ⁽¹⁾See non-GAAP reconciliation under the section “GAAP to Non-GAAP Reconciliations”.

For the three months ended March 31, 2025, the Company declared cash dividends of $0.21 per share, totaling $1.7 million. Beginning in the first quarter of 2025, the Company increased the quarterly cash dividend by $0.01 or 5% from the previous quarter's $0.20 per share cash dividend.  

For the three months ended March 31, 2025, the Company did not repurchase any shares of its common stock.  The Company repurchased 43,858 shares of its common stock, at an average price of $24.00 per share during the same period in 2024. 

At March 31, 2025, the Company's equity-to-assets ratio was 11.32%, compared to 11.32% at March 31, 2024.

Asset Quality

For the 2025 first quarter, the Company recorded a provision for credit losses of $95,000, compared to a recovery of credit losses of $136,000 for the same period of 2024.  

Net recoveries were $209,000, or (0.06%) of average loans, annualized, for the 2025 first quarter, compared to net recoveries of $68,000, or (0.02%) of average loans, annualized, for the same period of 2024.      

Nonperforming loans at March 31, 2025, were $29.6 million, compared to $10.8 million at March 31, 2024. The increase in nonperforming assets is primarily the result of a $12.4 million loan moved to nonaccrual in the 2024 third quarter. The allowance for credit losses at March 31, 2025, stood at $22.4 million, or 1.44% of total loans, compared to $21.1 million, or 1.41% of total loans at March 31, 2024. The increase in the allowance for credit losses was mainly from changes in projected loss drivers, prepayment assumptions, curtailment expectations over the reasonable and supportable forecast period, and geographic footprint of unemployment data, as well as an overall increase in total loans.

Mr. Ranttila continued, “Asset quality remains stable, with nonperforming assets to total assets of 1.56% at March 31, 2025, compared to 1.62% at December 31, 2024.  Nonperforming assets at March 31, 2025, included two relationships that moved into nonaccrual status in the second quarter of 2024 and one that moved into nonaccrual status in the third quarter of 2024.  We remain well reserved for potential credit losses with an allowance for credit losses to total loans of 1.44% at March 31, 2025, compared to 1.48% at December 31, 2024, and 1.41% at March 31, 2024.  We continue to expect stable economic activity across our Central, Western, and Northeast Ohio markets that 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 $1.89 billion at March 31, 2025. 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)

		March 31,				December 31,				September 30,				June 30,				March 31,
Balance Sheets (period end)		2025				2024				2024				2024				2024
ASSETS
Cash and due from banks		$	56,150			$	46,037			$	61,851			$	50,496			$	44,816
Federal funds sold			10,720				9,755				12,022				1,762				1,438
Cash and cash equivalents			66,870				55,792				73,873				52,258				46,254
Investment securities available for sale, at fair value			165,014				165,802				169,895				166,424				167,890
Other investments			1,021				855				895				881				907
Loans held for sale			-				-				249				-				-
Loans:
Commercial real estate:
Owner occupied			185,412				181,447				187,313				182,809				178,543
Non-owner occupied			413,621				412,291				407,159				385,648				398,845
Multifamily			88,737				89,849				94,798				86,951				81,691
Residential real estate			351,274				353,442				345,748				337,121				331,480
Commercial and industrial			235,547				229,034				213,172				234,702				227,433
Home equity lines of credit			147,154				143,379				137,761				131,047				129,287
Construction and other			122,653				103,608				111,550				132,530				135,716
Consumer installment			5,951				6,564				7,030				6,896				7,131
Total loans			1,550,349				1,519,614				1,504,531				1,497,704				1,490,126
Less allowance for credit losses			22,401				22,447				22,526				21,795				21,069
Net loans			1,527,948				1,497,167				1,482,005				1,475,909				1,469,057
Premises and equipment, net			22,339				20,565				20,528				20,744				21,035
Goodwill			36,356				36,356				36,356				36,356				36,356
Core deposit intangibles			5,361				5,611				5,869				6,126				6,384
Bank-owned life insurance			34,866				35,259				35,049				34,802				34,575
Accrued interest receivable and other assets			28,581				35,952				32,916				34,686				34,210
TOTAL ASSETS		$	1,888,356			$	1,853,359			$	1,857,635			$	1,828,186			$	1,816,668

		March 31,				December 31,				September 30,				June 30,				March 31,
		2025				2024				2024				2024				2024
LIABILITIES
Deposits:
Noninterest-bearing demand		$	369,492			$	377,875			$	390,933			$	387,024			$	390,185
Interest-bearing demand			222,953				208,291				218,002				206,542				209,015
Money market			481,664				414,074				376,619				355,630				318,823
Savings			189,943				197,749				199,984				192,472				196,721
Time			275,673				247,704				327,231				327,876				332,165
Total deposits			1,539,725				1,445,693				1,512,769				1,469,544				1,446,909
Federal Home Loan Bank advances			110,000				172,400				106,000				125,000				137,000
Other borrowings			11,609				11,660				11,711				11,762				11,812
Accrued interest payable and other liabilities			13,229				13,044				16,450				15,092				15,372
TOTAL LIABILITIES			1,674,563				1,642,797				1,646,930				1,621,398				1,611,093
STOCKHOLDERS' EQUITY
Common stock, no par value; 25,000,000 shares authorized, 9,960,503
shares issued, 8,081,193 shares outstanding as of March 31, 2025			162,195				161,999				161,916				161,823				161,823
Additional paid-in capital			515				246				108				-				-
Retained earnings			112,432				109,299				106,067				105,342				102,791
Accumulated other comprehensive loss			(20,440	)			(20,073	)			(16,477	)			(19,468	)			(18,130	)
Treasury stock, at cost; 1,879,310 shares as of March 31, 2025			(40,909	)			(40,909	)			(40,909	)			(40,909	)			(40,909	)
TOTAL STOCKHOLDERS' EQUITY			213,793				210,562				210,705				206,788				205,575
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	1,888,356			$	1,853,359			$	1,857,635			$	1,828,186			$	1,816,668

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		2025				2024				2024				2024				2024
INTEREST AND DIVIDEND INCOME
Interest and fees on loans		$	23,387			$	23,308			$	23,441			$	23,422			$	22,395
Interest-earning deposits in other institutions			291				320				348				386				437
Federal funds sold			155				151				143				122				152
Investment securities:
Taxable interest			530				528				528				505				467
Tax-exempt interest			960				961				962				966				972
Dividends on stock			150				170				191				198				189
Total interest and dividend income			25,473				25,438				25,613				25,599				24,612
INTEREST EXPENSE
Deposits			7,885				8,582				8,792				8,423				7,466
Short-term borrowings			1,347				1,128				1,575				1,920				1,993
Other borrowings			143				173				173				173				184
Total interest expense			9,375				9,883				10,540				10,516				9,643
NET INTEREST INCOME			16,098				15,555				15,073				15,083				14,969
Provision for (recovery of) credit losses			95				(177	)			2,234				87				(136	)
NET INTEREST INCOME AFTER PROVISION
FOR (RECOVERY OF) CREDIT LOSSES			16,003				15,732				12,839				14,996				15,105
NONINTEREST INCOME
Service charges on deposit accounts			989				1,068				959				971				909
Gain (Loss) on equity securities			(34	)			56				14				(27	)			(52	)
Earnings on bank-owned life insurance			493				230				246				227				227
Gain on sale of loans			24				64				56				69				10
Revenue from investment services			268				237				206				269				204
Gross rental income			-				1				-				-				67
Other income			204				258				262				251				431
Total noninterest income			1,944				1,914				1,743				1,760				1,796
NONINTEREST EXPENSE
Salaries and employee benefits			6,557				5,996				6,201				6,111				6,333
Occupancy expense			687				596				627				601				552
Equipment expense			225				221				203				261				240
Data processing costs			1,271				1,174				1,214				1,135				1,217
Ohio state franchise tax			399				390				399				397				397
Federal deposit insurance expense			267				293				255				256				251
Professional fees			598				611				539				557				558
Advertising expense			364				371				283				508				419
Software amortization expense			90				83				74				21				22
Core deposit intangible amortization			249				258				257				258				258
Gross other real estate owned expenses			-				-				-				-				99
Other expense			1,486				1,810				1,819				1,797				1,619
Total noninterest expense			12,193				11,803				11,871				11,902				11,965
Income before income taxes			5,754				5,843				2,711				4,854				4,936
Income taxes			924				995				371				690				769
NET INCOME		$	4,830			$	4,848			$	2,340			$	4,164			$	4,167
PTPP (1)		$	5,849			$	5,666			$	4,945			$	4,941			$	4,800

(1)  See section “GAAP to Non-GAAP Reconciliations” for the reconciliation of GAAP performance measures to 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,
		2025				2024				2024				2024				2024
Per common share data
Net income per common share - basic		$	0.60			$	0.60			$	0.29			$	0.52			$	0.52
Net income per common share - diluted		$	0.60			$	0.60			$	0.29			$	0.52			$	0.51
Dividends declared per share		$	0.21			$	0.20			$	0.20			$	0.20			$	0.20
Book value per share (period end)		$	26.46			$	26.08			$	26.11			$	25.63			$	25.48
Tangible book value per share (period end) (1) (2)		$	21.29			$	20.88			$	20.87			$	20.37			$	20.18
Dividends declared		$	1,697			$	1,616			$	1,615			$	1,613			$	1,613
Dividend yield			3.05	%			2.84	%			2.76	%			3.34	%			3.37	%
Dividend payout ratio			35.13	%			33.33	%			69.02	%			38.74	%			38.71	%
Average shares outstanding - basic			8,078,805				8,071,905				8,071,032				8,067,144				8,091,203
Average shares outstanding - diluted			8,097,545				8,092,357				8,086,872				8,072,499				8,096,317
Period ending shares outstanding			8,081,193				8,073,708				8,071,032				8,067,144				8,067,144
Selected ratios
Return on average assets (Annualized)			1.04	%			1.04	%			0.50	%			0.91	%			0.92	%
Return on average equity (Annualized)			9.22	%			9.19	%			4.45	%			8.15	%			8.16	%
Return on average tangible common equity (1) (3)			11.48	%			11.50	%			5.58	%			10.29	%			10.30	%
Efficiency (4)			65.22	%			65.05	%			67.93	%			67.97	%			68.68	%
Equity to assets at period end			11.32	%			11.36	%			11.34	%			11.31	%			11.32	%
Noninterest expense to average assets			0.65	%			0.63	%			0.66	%			0.64	%			0.66	%

(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
		March 31,				December 31,				September 30,				June 30,				March 31,
Yields		2025				2024				2024				2024				2024
Interest-earning assets:
Loans receivable (1)			6.17	%			6.12	%			6.19	%			6.27	%			6.11	%
Investment securities (1) (2)			3.69	%			3.63	%			3.62	%			3.59	%			3.52	%
Interest-earning deposits with other banks			3.57	%			4.23	%			4.27	%			4.59	%			4.88	%
Total interest-earning assets			5.81	%			5.78	%			5.84	%			5.92	%			5.77	%
Deposits:
Interest-bearing demand deposits			2.13	%			2.07	%			2.16	%			1.93	%			1.86	%
Money market deposits			3.38	%			3.81	%			3.93	%			3.95	%			3.81	%
Savings deposits			0.82	%			0.75	%			0.71	%			0.64	%			0.58	%
Certificates of deposit			3.93	%			4.21	%			4.49	%			4.57	%			4.06	%
Total interest-bearing deposits			2.82	%			3.05	%			3.17	%			3.15	%			2.88	%
Non-Deposit Funding:
Borrowings			4.58	%			4.93	%			5.54	%			5.60	%			5.61	%
Total interest-bearing liabilities			3.01	%			3.21	%			3.41	%			3.45	%			3.23	%
Cost of deposits			2.10	%			2.24	%			2.33	%			2.30	%			2.08	%
Cost of funds			2.30	%			2.41	%			2.58	%			2.61	%			2.42	%
Net interest margin (3)			3.69	%			3.56	%			3.46	%			3.51	%			3.54	%

(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
		March 31,				December 31,				September 30,				June 30,				March 31,
Asset quality data		2025				2024				2024				2024				2024
(Dollar amounts in thousands, unaudited)
Nonperforming assets (1)		$	29,550			$	29,984			$	30,078			$	15,961			$	10,831
Allowance for credit losses		$	22,401			$	22,447			$	22,526			$	21,795			$	21,069
Allowance for credit losses/total loans			1.44	%			1.48	%			1.50	%			1.46	%			1.41	%
Net charge-offs (recoveries):
Quarter-to-date		$	(209	)		$	151			$	1,382			$	(29	)		$	(68	)
Year-to-date			(209	)			1,436				1,285				(97	)			(68	)
Net charge-offs (recoveries) to average loans, annualized:
Quarter-to-date			(0.06	%)			0.04	%			0.36	%			(0.01	%)			(0.02	%)
Year-to-date			(0.06	%)			0.10	%			0.11	%			(0.01	%)			(0.02	%)
Nonperforming loans/total loans			1.91	%			1.97	%			2.00	%			1.07	%			0.73	%
Allowance for credit losses/nonperforming loans			75.81	%			74.86	%			74.89	%			136.55	%			194.52	%
Nonperforming assets/total assets			1.56	%			1.62	%			1.62	%			0.87	%			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, unaudited)		March 31,				December 31,				September 30,				June 30,				March 31,
		2025				2024				2024				2024				2024
Stockholders' equity		$	213,793			$	210,562			$	210,705			$	206,788			$	205,575
Less goodwill and other intangibles			41,717				41,967				42,225				42,482				42,740
Tangible common equity		$	172,076			$	168,595			$	168,480			$	164,306			$	162,835
Shares outstanding			8,081,193				8,073,708				8,071,032				8,067,144				8,067,144
Tangible book value per share		$	21.29			$	20.88			$	20.87			$	20.37			$	20.18

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,
		2025				2024				2024				2024				2024
Average stockholders' equity		$	212,465			$	209,864			$	209,096			$	205,379			$	205,342
Less average goodwill and other intangibles			41,839				42,092				42,350				42,607				42,654
Average tangible common equity		$	170,626			$	167,772			$	166,746			$	162,772			$	162,688
Net income		$	4,830			$	4,848			$	2,340			$	4,164			$	4,167
Return on average tangible common equity (annualized)			11.48	%			11.50	%			5.58	%			10.29	%			10.30	%

Reconciliation of Pre-Tax Pre-Provision Income (PTPP)		For the Three Months Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
		2025				2024				2024				2024				2024
Net income		$	4,830			$	4,848			$	2,340			$	4,164			$	4,167
Add income taxes			924				995				371				690				769
Add provision for (recovery of) credit losses			95				(177	)			2,234				87				(136	)
PTPP		$	5,849			$	5,666			$	4,945			$	4,941			$	4,800

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

		For the Three Months Ended
		March 31,												March 31,
		2025												2024
		Average								Average				Average								Average
		Balance				Interest				Yield/Cost				Balance				Interest				Yield/Cost
Interest-earning assets:
Loans receivable (1)		$	1,537,337			$	23,387				6.17	%		$	1,476,543			$	22,395				6.11	%
Investment securities (1) (2)			191,996				1,490				3.69	%			191,851				1,439				3.56	%
Interest-earning deposits with other banks (3)			67,661				596				3.57	%			64,139				778				4.88	%
Total interest-earning assets			1,796,994				25,473				5.81	%			1,732,533				24,612				5.78	%
Noninterest-earning assets			84,542												90,151
Total assets		$	1,881,536											$	1,822,684
Interest-bearing liabilities:
Interest-bearing demand deposits		$	220,192			$	1,154				2.13	%		$	211,009			$	978				1.86	%
Money market deposits			458,446				3,816				3.38	%			298,479				2,827				3.81	%
Savings deposits			192,931				388				0.82	%			201,080				290				0.58	%
Certificates of deposit			261,006				2,527				3.93	%			333,871				3,371				4.06	%
Short-term borrowings			120,238				1,347				4.54	%			144,357				1,993				5.55	%
Other borrowings			11,639				143				4.98	%			11,840				184				6.25	%
Total interest-bearing liabilities			1,264,452				9,375				3.01	%			1,200,636				9,643				3.23	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits			390,354												400,209
Other liabilities			14,265												16,497
Stockholders' equity			212,465												205,342
Total liabilities and stockholders' equity		$	1,881,536											$	1,822,684
Net interest income						$	16,098											$	14,969
Interest rate spread (4)											2.80	%											2.55	%
Net interest margin (5)											3.69	%											3.54	%
Ratio of average interest-earning assets to average interest-bearing liabilities											142.12	%											144.30	%

(1) Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $272 and  $281 for the three months ended March 31, 2025 and 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 Three Months Ended
		March 31,												December 31,
		2025												2024
		Average								Average				Average								Average
		Balance				Interest				Yield/Cost				Balance				Interest				Yield/Cost
Interest-earning assets:
Loans receivable (1)		$	1,537,337			$	23,387				6.17	%		$	1,517,051			$	23,308				6.12	%
Investment securities (1) (2)			191,996				1,490				3.69	%			191,390				1,489				3.63	%
Interest-earning deposits with other banks (3)			67,661				596				3.57	%			60,241				641				4.23	%
Total interest-earning assets			1,796,994				25,473				5.81	%			1,768,682				25,438				5.78	%
Noninterest-earning assets			84,542												88,205
Total assets		$	1,881,536											$	1,856,887
Interest-bearing liabilities:
Interest-bearing demand deposits		$	220,192			$	1,154				2.13	%		$	216,492			$	1,126				2.07	%
Money market deposits			458,446				3,816				3.38	%			393,298				3,768				3.81	%
Savings deposits			192,931				388				0.82	%			197,257				373				0.75	%
Certificates of deposit			261,006				2,527				3.93	%			313,582				3,315				4.21	%
Short-term borrowings			120,238				1,347				4.54	%			93,200				1,128				4.81	%
Other borrowings			11,639				143				4.98	%			11,690				173				5.89	%
Total interest-bearing liabilities			1,264,452				9,375				3.01	%			1,225,519				9,883				3.21	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits			390,354												404,428
Other liabilities			14,265												17,076
Stockholders' equity			212,465												209,864
Total liabilities and stockholders' equity		$	1,881,536											$	1,856,887
Net interest income						$	16,098											$	15,555
Interest rate spread (4)											2.80	%											2.57	%
Net interest margin (5)											3.69	%											3.56	%
Ratio of average interest-earning assets to average interest-bearing liabilities											142.12	%											144.32	%

(1)  Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $272 and $280 for the three months ended March 31, 2025 and December 31, 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.

FAQ

What was Middlefield Banc Corp's (MBCN) earnings per share in Q1 2025?

MBCN reported earnings of $0.60 per diluted share in Q1 2025, representing a 17.6% increase year-over-year.

How much did MBCN's net interest margin improve in Q1 2025?

The net interest margin expanded by 15 basis points to 3.69% compared to 3.54% in the previous year.

What is the new quarterly dividend for MBCN shareholders?

MBCN increased its quarterly dividend by 5% to $0.21 per share in Q1 2025.

How much did MBCN's total loans grow in Q1 2025?

Total loans increased by 4% year-over-year to reach $1.55 billion.

What was MBCN's asset quality status in Q1 2025?

Nonperforming assets to total assets decreased by 6 basis points from Q4 2024 to 1.56%, though nonperforming loans increased year-over-year.