MIDDLEFIELD, Ohio, Oct. 22, 2025 (GLOBE NEWSWIRE) -- Middlefield Banc Corp. (NASDAQ: MBCN) today reported financial results for the nine months ended September 30, 2025.
2025 Third-Quarter Financial Highlights (on a year-over-year basis):
-- Third quarter diluted earnings increased to $0.65
per share, driving year-to-date earnings of $2.01
per share
-- Pre-tax, pre-provision earnings((1) increased 37.3%
to $6.8 million
-- Net interest margin expanded 33 basis points to 3.79%
-- Total loans increased $102.5 million, or 6.8% to a
record $1.61 billion
-- Total assets increased $121.3 million, or 6.5% to
a record $1.98 billion
-- Book value increased 6.1% to $27.71 from $26.11 per
share, while tangible book value((1) increased 8.4%
to $22.62 from $20.87 per share
(1) See non-GAAP reconciliation under the section "GAAP to Non-GAAP Reconciliations"
"Our third quarter performance was exceptionally strong, supported by core earnings growth that reflects margin expansion and disciplined operating expense control," stated Ronald L. Zimmerly, Jr., President and Chief Executive Officer. "These results, combined with steady asset growth and strong asset quality, demonstrate the strength of our community banking model and our commitment to serving customers across our markets. Solid third quarter financial results have driven year-to-date earnings per diluted share to $2.01, increased book value by 6.1% to $27.71 per share, and produced a return on average assets of 1.14%, compared to 0.77% a year ago."
"Continued investments in our operations and talent have strengthened our foundation and positioned Middlefield for sustained performance and shareholder value creation. The relocation of our Westerville office remains on track to open in the fourth quarter of 2025, advancing our multi-year strategy to expand our presence in the Central Ohio region. As we look to the remainder of the year, we are confident 2025 will be another year of profitable growth and progress," concluded Mr. Zimmerly.
Income Statement
Net interest income for the 2025 third quarter increased 16.5% to $17.6 million, compared to $15.1 million for the 2024 third quarter. The net interest margin for the 2025 third quarter was 3.79%, compared to 3.46% for the same period of 2024. Net interest income for the nine months ended September 30, 2025, increased 13.2% to $51.1 million, compared to $45.1 million for the same period last year. The increase was primarily due to strong loan growth, a decrease in FHLB advances, a decline in the rates for FHLB advances, and an overall decline in rates for deposits despite an increase in total deposit balances. Net interest margin for the nine months ended September 30, 2025, was 3.79%, compared to 3.51% for the same period last year.
Noninterest income for the 2025 third quarter was $2.3 million, compared to $1.7 million for the same period the previous year. For the nine months ended September 30, 2025, noninterest income increased $2.0 million to $7.3 million, compared to $5.3 million for the same period in 2024. In April 2025, Middlefield completed an exchange of real estate with the City of Westerville, Ohio for a parcel of land that had a fair value of $1.5 million. In exchange, Middlefield transferred land and a building with related furnishings associated with its current branch located in Westerville, Ohio. The transferred branch had a net book value of $221,000. The exchange of real estate transaction resulted in a one-time, non-cash gain of $1.2 million during the second quarter of 2025.
For the 2025 third quarter, noninterest expense was $13.1 million, compared to $11.9 million for the 2024 third quarter. Noninterest expense for the nine months ended September 30, 2025, was $38.9 million, compared to $35.7 million for the same period in 2024. Noninterest expense for the 2025 second quarter included a $700,000 loss associated with recording a separate property located in Westerville, Ohio as held for sale.
Net income for the 2025 third quarter was $5.3 million, or $0.65 per diluted share, compared to $2.3 million, or $0.29 per diluted share, for the same period last year. Net income for the nine months ended September 30, 2025, was $16.3 million, or $2.01 per diluted share, compared to $10.7 million, or $1.32 per diluted share, for the same period last year.
For the 2025 third quarter, pre-tax, pre-provision net income was $6.8 million, compared to $4.9 million for the same period of 2024. For the nine months ended September 30, 2025, pre-tax, pre-provision net income was $19.5 million, compared to $14.7 million for the same period last year. (See non-GAAP reconciliation under the section "GAAP to Non-GAAP Reconciliations".)
Balance Sheet
Total assets at September 30, 2025, increased 6.5% to a record $1.98 billion, compared to $1.86 billion at September 30, 2024. Total loans at September 30, 2025, were a record $1.61 billion, compared to $1.50 billion at September 30, 2024. The 6.8% year-over-year increase in total loans was primarily due to higher commercial and industrial loans, owner occupied, home equity lines of credit, and residential real estate loans, partially offset by a reduction in non-owner occupied, construction and other, and multifamily loans.
The investment securities available-for-sale portfolio was $155.9 million at September 30, 2025, compared with $169.9 million at September 30, 2024.
Total liabilities at September 30, 2025, increased 6.5% to $1.75 billion, compared to $1.65 billion at September 30, 2024. Total deposits at September 30, 2025, were $1.62 billion, compared to $1.51 billion at September 30, 2024. The 7.2% year-over-year increase in deposits was primarily due to growth in money market deposits, partially offset by a decline in time deposit accounts. Noninterest-bearing demand deposits were 25.3% of total deposits at September 30, 2025, compared to 25.8% at September 30, 2024. At September 30, 2025, the Company had brokered deposits of $108.6 million, compared to $86.5 million at September 30, 2024.
Michael C. Ranttila, Chief Financial Officer, stated, "Throughout the year we have been focused on growing core deposits by improving the mix of commercial and industrial loans and growing treasury management relationships. As a result of these strategies, commercial and industrial loans have been the largest contributor to loan growth since September 2024. At September 30, 2025, commercial and industrial loans have increased $56.3 million, or 26.4% year-over-year. Increasing commercial and industrial relationships have helped support core deposit growth, which at September 30, 2025, has increased 6.1% compared to the same period a year ago."
Middlefield's CRE portfolio included the following categories at September 30, 2025:
Percent Percent Weighted
of of Average
(Dollar amounts in CRE Loan
thousands) Balance Portfolio Portfolio Loan-to-Value
-------- --------- --------- -------------
Multi-Family $ 88,899 12.7% 5.5% 64.6%
Owner Occupied
Real Estate and
Rental and
Leasing 73,969 10.6% 4.6% 59.1%
Other Services
(except Public
Administration) 41,291 5.9% 2.6% 58.2%
Manufacturing 22,991 3.3% 1.4% 50.4%
Educational
Services 11,762 1.7% 0.7% 49.7%
Accommodation and
Food Services 11,441 1.6% 0.7% 47.4%
Other 60,146 8.5% 3.7% 53.0%
------- --------- ---------
Total Owner
Occupied $221,600 31.6% 13.7%
------- --------- ---------
Non-Owner Occupied
Real Estate and
Rental and
Leasing 324,180 46.3% 20.2% 54.2%
Accommodation and
Food Services 38,132 5.4% 2.4% 58.0%
Health Care and
Social
Assistance 19,100 2.7% 1.2% 56.8%
Manufacturing 3,903 0.6% 0.2% 44.4%
Other 5,039 0.7% 0.3% 62.9%
------- --------- ---------
Total Non-Owner
Occupied $390,354 55.7% 24.3%
------- --------- ---------
Total CRE $700,853 100.0% 43.5%
======= ========= =========
Stockholders' Equity and Dividends
At September 30, 2025, stockholders' equity was $224.1 million, compared to $210.7 million at September 30, 2024. The 6.4% 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 September 30, 2025, was $27.71, compared to $26.11 at September 30, 2024.
At September 30, 2025, tangible stockholders' equity((1) was $182.9 million, compared to $168.5 million at September 30, 2024. On a per-share basis, tangible stockholders' equity((1) was $22.62 at September 30, 2025, compared to $20.87 at September 30, 2024. ((1) See non-GAAP reconciliation under the section "GAAP to Non-GAAP Reconciliations".
For the nine months ended September 30, 2025, the Company declared cash dividends of $0.63 per share, totaling $5.1 million. Beginning in the first quarter of 2025, the Company increased the quarterly cash dividend by $0.01, or 5% from the previous year's $0.20 per share quarterly cash dividend.
For the nine months ended September 30, 2025, the Company did not repurchase any shares of its common stock.
At September 30, 2025, the Company's equity-to-assets ratio was 11.33%, compared to 11.34% at September 30, 2024.
Asset Quality
For the 2025 third quarter, the Company recorded a provision for credit losses of $392,000, compared to a provision for credit losses of $2.2 million for the 2024 third quarter. For the nine months ended September 30, 2025, the Company recorded a recovery of credit losses of $19,000, compared to a provision for credit losses of $2.2 million for the same period of 2024.
Net recoveries were $334,000, or (0.03%) of average loans, annualized, for the nine months ended September 30, 2025, compared to net charge-offs of $1.3 million, or 0.11% of average loans, annualized, for the same period of 2024.
Nonperforming loans at September 30, 2025, were $29.9 million, which is consistent with nonperforming loans of $30.1 million at September 30, 2024. The allowance for credit losses at September 30, 2025, stood at $23.0 million, or 1.43% of total loans, compared to $22.5 million, or 1.50% of total loans at September 30, 2024. While the allowance for credit losses has remained flat year-over-year, the percentage of the allowance for credit losses to total loans has decreased as a result of an overall increase in total loans while maintaining strong credit quality within the portfolio.
Mr. Ranttila continued, "Nonperforming assets to total assets improved to 1.51% at September 30, 2025, compared to 1.62% at September 30, 2024, reflecting improving asset quality on a year-over-year basis. The modest increase in nonperforming assets from the prior quarter was primarily attributable to two commercial real estate loans, and one commercial and industrial loan. Combined, these loans represented approximately $5.6 million of the increase. We are actively working with these borrowers and expect a favorable resolution in the coming quarters. We believe these relationships are not indicative of a trend in the markets we serve, our portfolio, or our underwriting standards. Overall, we remain encouraged by the strength of our portfolio, ongoing loan and deposit growth, and the year-over-year improvement in net interest margin. We believe these positive trends will continue through the remainder of 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 $1.98 billion at September 30, 2025. The Bank operates 21 full-service banking centers and an LPL Financial$(R)$ 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.
MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(Dollar amounts in thousands, unaudited)
September December September
30, June 30, March 31, 31, 30,
Balance Sheets
(period end) 2025 2025 2025 2024 2024
------------------ ---------- ---------- ---------- ---------- ----------
ASSETS
Cash and due from
banks $ 81,372 $ 59,145 $ 56,150 $ 46,037 $ 61,851
Federal funds
sold 22,333 13,701 10,720 9,755 12,022
--------- --------- --------- --------- ---------
Cash and cash
equivalents 103,705 72,846 66,870 55,792 73,873
Investment
securities
available for
sale, at fair
value 155,855 161,116 165,014 165,802 169,895
Other investments 1,131 1,014 1,021 855 895
Loans held for
sale 209 152 - - 249
Loans:
Commercial
real estate:
Owner
occupied 221,600 196,645 185,412 181,447 187,313
Non-owner
occupied 390,354 405,032 413,621 412,291 407,159
Multifamily 88,899 79,497 88,737 89,849 94,798
Residential
real estate 366,307 357,217 351,274 353,442 345,748
Commercial and
industrial 269,422 257,519 235,547 229,034 213,172
Home equity
lines of
credit 159,805 156,297 147,154 143,379 137,761
Construction
and other 104,843 123,531 122,653 103,608 111,550
Consumer
installment 5,794 6,187 5,951 6,564 7,030
--------- --------- --------- --------- ---------
Total loans 1,607,024 1,581,925 1,550,349 1,519,614 1,504,531
Less allowance
for credit
losses 23,029 22,335 22,401 22,447 22,526
--------- --------- --------- --------- ---------
Net loans 1,583,995 1,559,590 1,527,948 1,497,167 1,482,005
Premises and
equipment, net 21,428 20,304 20,494 20,565 20,528
Premises and
equipment held
for sale 998 1,015 - - -
Goodwill 36,356 36,356 36,356 36,356 36,356
Core deposit
intangibles 4,862 5,112 5,362 5,611 5,869
Bank-owned life
insurance 35,335 35,102 34,866 35,259 35,049
Accrued interest
receivable and
other assets 35,019 31,762 30,425 35,952 32,916
--------- --------- --------- --------- ---------
TOTAL ASSETS $1,978,893 $1,924,369 $1,888,356 $1,853,359 $1,857,635
========= ========= ========= ========= =========
September December September
30, June 30, March 31, 31, 30,
2025 2025 2025 2024 2024
---------- ---------- ---------- ---------- ----------
LIABILITIES
Deposits:
Noninterest-bearing
demand $ 410,612 $ 371,155 $ 369,492 $ 377,875 $ 390,933
Interest-bearing
demand 232,452 236,239 222,953 208,291 218,002
Money market 528,246 466,935 481,664 414,074 376,619
Savings 180,547 184,534 189,943 197,749 199,984
Time 270,445 334,755 275,673 247,704 327,231
--------- --------- --------- --------- ---------
Total deposits 1,622,302 1,593,618 1,539,725 1,445,693 1,512,769
Federal Home Loan Bank
advances 106,000 89,000 110,000 172,400 106,000
Other borrowings 11,502 11,557 11,609 11,660 11,711
Accrued interest
payable and other
liabilities 14,969 14,142 13,229 13,044 16,450
--------- --------- --------- --------- ---------
TOTAL LIABILITIES 1,754,773 1,708,317 1,674,563 1,642,797 1,646,930
--------- --------- --------- --------- ---------
STOCKHOLDERS' EQUITY
Common stock, no par
value; 25,000,000
shares authorized,
9,966,196
shares issued,
8,086,886 shares
outstanding as of
September 30, 2025 162,349 162,195 162,195 161,999 161,916
Additional paid-in
capital 1,041 811 515 246 108
Retained earnings 120,514 116,892 112,432 109,299 106,067
Accumulated other
comprehensive loss (18,875) (22,937) (20,440) (20,073) (16,477)
Treasury stock, at
cost; 1,879,310 shares
as of September 30,
2025 (40,909) (40,909) (40,909) (40,909) (40,909)
--------- --------- --------- --------- ---------
TOTAL STOCKHOLDERS'
EQUITY 224,120 216,052 213,793 210,562 210,705
--------- --------- --------- --------- ---------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $1,978,893 $1,924,369 $1,888,356 $1,853,359 $1,857,635
========= ========= ========= ========= =========
MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(Dollar amounts in thousands, unaudited)
For the Nine Months
For the Three Months Ended Ended
------------------------------------------------------- ------------------------
September June March December September September September
30, 30, 31, 31, 30, 30, 30,
Statements of
Income 2025 2025 2025 2024 2024 2025 2024
------------------- ---------- ------- ------- --------- ----------- ---------- -----------
INTEREST AND
DIVIDEND INCOME
Interest and fees
on loans $ 25,485 $25,122 $23,387 $ 23,308 $ 23,441 $ 73,994 $ 69,258
Interest-earning
deposits in other
institutions 299 325 291 320 348 915 1,171
Federal funds sold 192 120 155 151 143 467 417
Investment
securities:
Taxable
interest 538 526 530 528 528 1,594 1,500
Tax-exempt
interest 958 960 960 961 962 2,878 2,900
Dividends on stock 136 183 150 170 191 469 578
--------- ------ ------ -------- ------- --------- -------
Total interest
and dividend
income 27,608 27,236 25,473 25,438 25,613 80,317 75,824
--------- ------ ------ -------- ------- --------- -------
INTEREST EXPENSE
Deposits 8,972 8,789 7,885 8,582 8,792 25,646 24,681
Short-term
borrowings 918 870 1,347 1,128 1,575 3,135 5,488
Other borrowings 153 140 143 173 173 436 530
--------- ------ ------ -------- ------- --------- -------
Total interest
expense 10,043 9,799 9,375 9,883 10,540 29,217 30,699
--------- ------ ------ -------- ------- --------- -------
NET INTEREST INCOME 17,565 17,437 16,098 15,555 15,073 51,100 45,125
Provision for
(recovery of)
credit losses 392 (506) 95 (177) 2,234 (19) 2,185
--------- ------ ------ -------- ------- --------- -------
NET INTEREST INCOME
AFTER PROVISION
FOR (RECOVERY OF)
CREDIT LOSSES 17,173 17,943 16,003 15,732 12,839 51,119 42,940
--------- ------ ------ -------- ------- --------- -------
NONINTEREST INCOME
Service charges on
deposit accounts 1,072 1,061 989 1,068 959 3,122 2,839
Gain (Loss) on
equity
securities 17 (7) (34) 56 14 (24) (65)
Earnings on
bank-owned life
insurance 228 230 493 230 246 951 700
Gain on sale of
loans 158 39 24 64 56 221 135
Revenue from
investment
services 306 310 268 237 206 884 679
Gain on exchange
of real estate - 1,229 - - - 1,229 -
Gross rental
income - - - - - - 67
Other income 543 216 204 259 262 963 944
--------- ------ ------ -------- ------- --------- -------
Total
noninterest
income 2,324 3,078 1,944 1,914 1,743 7,346 5,299
--------- ------ ------ -------- ------- --------- -------
NONINTEREST EXPENSE
Salaries and
employee
benefits 6,883 6,731 6,551 5,996 6,201 20,165 18,645
Occupancy expense 604 667 687 596 627 1,958 1,780
Equipment expense 249 248 225 221 203 722 704
Data processing
costs 1,240 1,273 1,271 1,174 1,214 3,784 3,665
Ohio state
franchise tax 399 399 399 390 399 1,197 1,193
Federal deposit
insurance
expense 267 267 267 293 255 801 762
Professional fees 700 521 598 611 539 1,819 1,654
Advertising
expense 386 451 364 371 283 1,201 1,210
Software
amortization
expense 94 95 90 83 74 279 117
Core deposit
intangible
amortization 250 250 249 258 257 749 773
Loss on premises
and equipment
held for sale 18 693 - - - 711 -
Gross other real
estate owned
expenses - - - - - - 99
Other expense 2,008 2,056 1,492 1,810 1,819 5,556 5,136
--------- ------ ------ -------- ------- --------- -------
Total
noninterest
expense 13,098 13,651 12,193 11,803 11,871 38,942 35,738
--------- ------ ------ -------- ------- --------- -------
Income before income
taxes 6,399 7,370 5,754 5,843 2,711 19,523 12,501
Income taxes 1,079 1,213 924 995 371 3,216 1,830
--------- ------ ------ -------- ------- --------- -------
NET INCOME $ 5,320 $ 6,157 $ 4,830 $ 4,848 $ 2,340 $ 16,307 $ 10,671
========= ====== ====== ======== ======= ========= =======
PTPP(1) $ 6,791 $ 6,864 $ 5,849 $ 5,666 $ 4,945 $ 19,504 $ 14,686
========= ====== ====== ======== ======= ========= =======
(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 For the Nine Months Ended
-------------------------------------------------------------------------- --------------------------
September December September September September
30, June 30, March 31, 31, 30, 30, 30,
2025 2025 2025 2024 2024 2025 2024
---------- ---------- ---------- ---------- ---------- ---------- ----------
Per common share
data
Net income per
common share -
basic $ 0.66 $ 0.76 $ 0.60 $ 0.60 $ 0.29 $ 2.02 $ 1.32
Net income per
common share -
diluted $ 0.65 $ 0.76 $ 0.60 $ 0.60 $ 0.29 $ 2.01 $ 1.32
Dividends
declared per
share $ 0.21 $ 0.21 $ 0.21 $ 0.20 $ 0.20 $ 0.63 $ 0.60
Book value per
share (period
end) $ 27.71 $ 26.74 $ 26.46 $ 26.08 $ 26.11 $ 27.71 $ 26.11
Tangible book
value per share
(period end)(1)
(2) $ 22.62 $ 21.60 $ 21.29 $ 20.88 $ 20.87 $ 22.62 $ 20.87
Dividends
declared $ 1,698 $ 1,697 $ 1,697 $ 1,616 $ 1,615 $ 5,092 $ 4,841
Dividend yield 2.78% 2.80% 3.05% 2.84% 2.76% 2.81% 2.78%
Dividend payout
ratio 31.92% 27.56% 35.13% 33.33% 69.02% 31.23% 45.37%
Average shares
outstanding -
basic 8,084,658 8,081,193 8,078,805 8,071,905 8,071,032 8,081,573 8,076,440
Average shares
outstanding -
diluted 8,147,495 8,113,572 8,097,545 8,092,357 8,086,872 8,130,213 8,092,280
Period ending
shares
outstanding 8,086,886 8,081,193 8,081,193 8,073,708 8,071,032 8,086,886 8,071,032
Selected ratios
----------------
Return on average
assets
(Annualized) 1.08% 1.29% 1.04% 1.04% 0.50% 1.14% 0.77%
Return on average
equity
(Annualized) 9.62% 11.53% 9.22% 9.19% 4.45% 10.12% 6.90%
Return on average
tangible common
equity(1) (3) 11.86% 14.31% 11.48% 11.50% 5.58% 12.54% 8.68%
Efficiency(4) 63.73% 64.49% 65.22% 65.05% 67.93% 64.45% 68.19%
Equity to assets
at period end 11.33% 11.23% 11.32% 11.36% 11.34% 11.33% 11.34%
Noninterest
expense to
average assets 0.67% 0.72% 0.65% 0.63% 0.66% 2.04% 1.94%
(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 Nine Months
For the Three Months Ended Ended
------------------------------------------------------------ ------------------------
September June March December September September September
30, 30, 31, 31, 30, 30, 30,
Yields 2025 2025 2025 2024 2024 2025 2024
------------------- ---------- ---- ----- -------- --------- --------- ---------
Interest-earning
assets:
Loans receivable(1) 6.30% 6.40% 6.17% 6.12% 6.19% 6.29% 6.19%
Investment
securities(1) (2) 3.69% 3.64% 3.69% 3.63% 3.62% 3.67% 3.60%
Interest-earning
deposits with
other banks 3.52% 4.13% 3.57% 4.23% 4.27% 3.72% 4.58%
Total
interest-earning
assets 5.93% 6.03% 5.81% 5.78% 5.84% 5.93% 5.85%
Deposits:
Interest-bearing
demand deposits 2.27% 2.27% 2.13% 2.07% 2.16% 2.29% 1.99%
Money market
deposits 3.43% 3.53% 3.38% 3.81% 3.93% 3.45% 3.90%
Savings deposits 0.95% 0.86% 0.82% 0.75% 0.71% 0.87% 0.64%
Certificates of
deposit 3.74% 3.66% 3.93% 4.21% 4.49% 3.77% 4.37%
Total
interest-bearing
deposits 2.91% 2.90% 2.82% 3.05% 3.17% 2.90% 3.07%
Non-Deposit
Funding:
Borrowings 4.53% 4.54% 4.58% 4.93% 5.54% 4.55% 5.58%
Total
interest-bearing
liabilities 3.03% 3.01% 3.01% 3.21% 3.41% 3.03% 3.37%
Cost of deposits 2.20% 2.21% 2.10% 2.24% 2.33% 2.17% 2.24%
Cost of funds 2.33% 2.34% 2.30% 2.41% 2.58% 2.32% 2.54%
Net interest
margin(3) 3.79% 3.88% 3.69% 3.56% 3.46% 3.79% 3.51%
(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
--------------------------------------------------------------------
September June March December September
30, 30, 31, 31, 30,
Asset quality data 2025 2025 2025 2024 2024
--------------------- ---------- ------- ------- --------- -----------
(Dollar amounts in
thousands,
unaudited)
Nonperforming
assets(1) $ 29,928 $25,052 $29,550 $ 29,984 $ 30,078
Allowance for credit
losses $ 23,029 $22,335 $22,401 $ 22,447 $ 22,526
Allowance for credit
losses/total loans 1.43% 1.41% 1.44% 1.48% 1.50%
Net charge-offs
(recoveries):
Quarter-to-date $ (107) $ (18) $ (209) $ 151 $ 1,382
Year-to-date (334) (227) (209) 1,436 1,285
Net charge-offs
(recoveries) to
average loans,
annualized:
Quarter-to-date (0.03%) (0.00%) (0.06%) 0.04% 0.36%
Year-to-date (0.03%) (0.03%) (0.06%) 0.10% 0.11%
Nonperforming
loans/total loans 1.86% 1.58% 1.91% 1.97% 2.00%
Allowance for credit
losses/nonperforming
loans 76.95% 89.15% 75.81% 74.86% 74.89%
Nonperforming
assets/total assets 1.51% 1.30% 1.56% 1.62% 1.62%
(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, September December September
unaudited) 30, June 30, March 31, 31, 30,
2025 2025 2025 2024 2024
---------- ---------- ---------- ---------- ----------
Stockholders'
equity $ 224,120 $ 216,052 $ 213,793 $ 210,562 $ 210,705
Less goodwill and
other
intangibles 41,218 41,468 41,718 41,967 42,225
--------- --------- --------- --------- ---------
Tangible common
equity $ 182,902 $ 174,584 $ 172,075 $ 168,595 $ 168,480
========= ========= ========= ========= =========
Shares
outstanding 8,086,886 8,081,193 8,081,193 8,073,708 8,071,032
--------- --------- --------- --------- ---------
Tangible book
value per share $ 22.62 $ 21.60 $ 21.29 $ 20.88 $ 20.87
========= ========= ========= ========= =========
Reconciliation
of Average
Equity to
Return on
Average
Tangible Common
Equity For the Three Months Ended For the Nine Months Ended
--------------- ---------------------------------------------------------------------- ----------------------------
September March December September September September
30, June 30, 31, 31, 30, 30, 30,
2025 2025 2025 2024 2024 2025 2024
----------- -------- -------- -------- ----------- ----------- -----------
Average
stockholders'
equity $ 219,278 $214,144 $212,465 $209,864 $ 209,096 $ 215,395 $ 206,691
Less average
goodwill and
other
intangibles 41,340 41,589 41,839 42,092 42,350 41,589 42,512
------- ------- ------- ------- ------- ------- -------
Average tangible
common equity $ 177,938 $172,555 $170,626 $167,772 $ 166,746 $ 173,806 $ 164,179
======= ======= ======= ======= ======= ======= =======
Net income $ 5,320 $ 6,157 $ 4,830 $ 4,848 $ 2,340 $ 16,307 $ 10,671
Return on
average
tangible common
equity
(annualized) 11.86% 14.31% 11.48% 11.50% 5.58% 12.54% 8.68%
Reconciliation
of Pre-Tax
Pre-Provision
Income (PTPP) For the Three Months Ended For the Nine Months Ended
--------------- ------------------------------------------------------ -------------------------
September June March December September September September
30, 30, 31, 31, 30, 30, 30,
2025 2025 2025 2024 2024 2025 2024
----------- ------ ------ ---------- ----------- ----------- -----------
Net income $ 5,320 $6,157 $4,830 $ 4,848 $ 2,340 $ 16,307 $ 10,671
Add income taxes 1,079 1,213 924 995 371 3,216 1,830
Add provision
for (recovery
of) credit
losses 392 (506) 95 (177) 2,234 (19) 2,185
------- ----- ----- ------ ------- ------- -------
PTPP $ 6,791 $6,864 $5,849 $ 5,666 $ 4,945 $ 19,504 $ 14,686
======= ===== ===== ====== ======= ======= =======
MIDDLEFIELD BANC CORP.
Average Balance Sheets
(Dollar amounts in thousands, unaudited)
For the Three Months Ended
--------------------------------------------------------------------------
September 30, September 30,
2025 2024
---------------------------------- ----------------------------------
Average Average Average Average
Balance Interest Yield/Cost Balance Interest Yield/Cost
---------- ---------- ---------- ---------- ---------- ----------
Interest-earning
assets:
Loans receivable (1) $1,605,733 $ 25,485 6.30% $1,507,518 $ 23,441 6.19%
Investment
securities(1) (2) 188,211 1,496 3.69% 191,748 1,490 3.62%
Interest-earning
deposits with other
banks(3) 70,727 627 3.52% 63,580 682 4.27%
--------- ------ ---------- --------- ------ ----------
Total interest-earning
assets 1,864,671 27,608 5.93% 1,762,846 25,613 5.84%
------ ------
Noninterest-earning
assets 83,217 88,644
--------- ---------
Total assets $1,947,888 $1,851,490
========= =========
Interest-bearing
liabilities:
Interest-bearing
demand deposits $ 233,106 $ 1,331 2.27% $ 217,124 $ 1,181 2.16%
Money market deposits 479,785 4,143 3.43% 362,545 3,583 3.93%
Savings deposits 184,146 440 0.95% 198,775 357 0.71%
Certificates of
deposit 324,516 3,058 3.74% 325,240 3,671 4.49%
Short-term borrowings 82,306 918 4.43% 113,812 1,575 5.51%
Other borrowings 11,532 153 5.26% 11,739 173 5.86%
--------- ------ ---------- --------- ------ ----------
Total interest-bearing
liabilities 1,315,391 10,043 3.03% 1,229,235 10,540 3.41%
------ ------
Noninterest-bearing
liabilities:
Noninterest-bearing
demand deposits 398,307 396,456
Other liabilities 14,912 16,703
Stockholders' equity 219,278 209,096
--------- ---------
Total liabilities and
stockholders' equity $1,947,888 $1,851,490
========= =========
Net interest income $ 17,565 $ 15,073
====== ======
Interest rate spread(4) 2.90% 2.43%
Net interest margin(5) 3.79% 3.46%
Ratio of average
interest-earning
assets to average
interest-bearing
liabilities 141.76% 143.41%
(1) Tax-equivalent adjustments to calculate the yield
on tax-exempt securities and loans were $271 and $281
for the three months ended September 30, 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
--------------------------------------------------------------------------
September 30, June 30,
2025 2025
---------------------------------- ----------------------------------
Average Average Average Average
Balance Interest Yield/Cost Balance Interest Yield/Cost
---------- ---------- ---------- ---------- ---------- ----------
Interest-earning
assets:
Loans receivable(1) $1,605,733 $ 25,485 6.30% $1,576,050 $ 25,122 6.40%
Investment
securities(1) (2) 188,211 1,496 3.69% 191,619 1,486 3.64%
Interest-earning
deposits with other
banks(3) 70,727 627 3.52% 61,012 628 4.13%
--------- ------ ---------- --------- ------ ----------
Total interest-earning
assets 1,864,671 27,608 5.93% 1,828,681 27,236 6.03%
------ ------
Noninterest-earning
assets 83,217 79,414
--------- ---------
Total assets $1,947,888 $1,908,095
========= =========
Interest-bearing
liabilities:
Interest-bearing
demand deposits $ 233,106 $ 1,331 2.27% $ 238,884 $ 1,353 2.27%
Money market deposits 479,785 4,143 3.43% 489,525 4,313 3.53%
Savings deposits 184,146 440 0.95% 188,999 404 0.86%
Certificates of
deposit 324,516 3,058 3.74% 297,727 2,719 3.66%
Short-term borrowings 82,306 918 4.43% 77,666 870 4.49%
Other borrowings 11,532 153 5.26% 11,588 140 4.85%
--------- ------ ---------- --------- ------ ----------
Total interest-bearing
liabilities 1,315,391 10,043 3.03% 1,304,389 9,799 3.01%
------ ------
Noninterest-bearing
liabilities:
Noninterest-bearing
demand deposits 398,307 376,468
Other liabilities 14,912 13,094
Stockholders' equity 219,278 214,144
--------- ---------
Total liabilities and
stockholders' equity $1,947,888 $1,908,095
========= =========
Net interest income $ 17,565 $ 17,437
====== ======
Interest rate spread(4) 2.90% 3.02%
Net interest margin(5) 3.79% 3.88%
Ratio of average
interest-earning
assets to average
interest-bearing
liabilities 141.76% 140.19%
(1) Tax-equivalent adjustments to calculate the yield
on tax-exempt securities and loans were $271 and $266
for the three months ended September 30, 2025 and
June 30, 2025, 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 Nine Months Ended
--------------------------------------------------------------------------
September 30, September 30,
2025 2024
---------------------------------- ----------------------------------
Average Average Average Average
Balance Interest Yield/Cost Balance Interest Yield/Cost
---------- ---------- ---------- ---------- ---------- ----------
Interest-earning
assets:
Loans receivable(1) $1,573,040 $ 73,994 6.29% $1,495,834 $ 69,258 6.19%
Investment
securities(1) (2) 190,609 4,472 3.67% 191,784 4,400 3.60%
Interest-earning
deposits with other
banks(3) 66,466 1,851 3.72% 63,203 2,166 4.58%
--------- ------ ---------- --------- ------ ----------
Total interest-earning
assets 1,830,115 80,317 5.93% 1,750,821 75,824 5.85%
--------- ------ --------- ------
Noninterest-earning
assets 82,392 88,408
Total assets $1,912,507 $1,839,229
========= =========
Interest-bearing
liabilities:
Interest-bearing
demand deposits $ 223,719 $ 3,839 2.29% $ 212,699 $ 3,167 1.99%
Money market deposits 475,919 12,272 3.45% 332,987 9,730 3.90%
Savings deposits 188,692 1,232 0.87% 197,477 951 0.64%
Certificates of
deposit 294,416 8,303 3.77% 330,884 10,833 4.37%
Short-term borrowings 93,403 3,135 4.49% 132,275 5,488 5.54%
Other borrowings 11,586 436 5.03% 11,790 530 6.00%
--------- ------ ---------- --------- ------ ----------
Total interest-bearing
liabilities 1,287,735 29,217 3.03% 1,218,112 30,699 3.37%
--------- ------ --------- ------
Noninterest-bearing
liabilities:
Noninterest-bearing
demand deposits 395,385 397,764
Other liabilities 13,992 16,662
Stockholders' equity 215,395 206,691
--------- ---------
Total liabilities and
stockholders' equity $1,912,507 $1,839,229
========= ------ =========
Net interest income $ 51,100 $ 45,125
====== ======
Interest rate spread(4) 2.90% 2.48%
Net interest margin(5) 3.79% 3.51%
Ratio of average
interest-earning
assets to average
interest-bearing
liabilities 142.12% 143.73%
(1) Tax-equivalent adjustments to calculate the yield
on tax-exempt securities and loans were $809 and $851
for the nine months ended September 30, 2025 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.
Company Contact: Investor and Media Contact:
Ronald L. Zimmerly, Jr. Andrew M. Berger
President and Chief Executive Officer Managing Director
Middlefield Banc Corp. SM Berger & Company, Inc.
(419) 673-1217 (216) 464-6400
rzimmerly@middlefieldbank.com andrew@smberger.com
(END) Dow Jones Newswires
October 22, 2025 07:40 ET (11:40 GMT)