Middlefield Banc Corp. MBCN today reported record financial results for the twelve months ended December 31, 2019.
2019 Financial Highlights (on a year-over-year basis unless noted):
- Net income increased 2.3% to a record $12.7 million
- Earnings per diluted share increased 2.1% to a record $1.95 per share
- Return on average common equity was 9.35%, compared to 9.94%
- Return on average tangible common equity(1) was 10.72%, compared to 11.57%
- Book value per share was up 8.5% to a record $21.45 per share
- Tangible book value(1) per share was up 10.0% to a record $18.78 per share
- Total net loans decreased 0.7% to $977.5 million
- Net interest income improved 2.3% to $41.4 million
- Total noninterest income was up 29.9% to $4.8 million
- Noninterest expense was up only 4.5%
- Equity to assets strengthened to 11.65%, compared to 10.28%
- All per share data has been adjusted to reflect the November 8, 2019 two-for-one stock split
"Middlefield achieved record annual earnings, earnings per share, and book value for the year ended December 31, 2019, despite a more challenging banking landscape," stated Thomas G. Caldwell, President and Chief Executive Officer. "During the year, we were able to successfully offset macro related pressures related to a declining rate environment and significant competition for loans and deposits, as annual noninterest income increased nearly 30%, core asset quality improved, and noninterest expenses only increased 4.5%, compared to the prior year. We continue to invest in developing new products and services for our customers, and further expanded our footprint in Central Ohio with our new Plain City branch that opened during the 2019 fourth quarter.
"During 2019, the Company repurchased 98,832 shares of our common stock, increased our quarterly cash dividend by 7.1%, and completed a two-for-one stock split to improve our trading liquidity. These actions reflect management and the board's optimism for our future and commitment to creating value for all shareholders.
"As we look to 2020 and beyond, we expect market conditions will remain competitive. During this period, our strategy will remain focused on balancing loan growth with a conservative approach to risk. In addition, we will continue to pursue strategies aimed at diversifying sources of income, expanding our presence in Central Ohio, increasing our market share in our core Northeast Ohio markets, and investing in our platform to support our long-term growth opportunity," concluded Mr. Caldwell.
Income Statement
For the 2019 full year, net interest income increased 2.3% to $41.4 million, compared to $40.4 million for the same period last year. The net interest margin for the 2019 twelve-month period was 3.68%, compared to 3.77% for the same period last year. Net interest income for the 2019 fourth quarter was $10.3 million, compared to $10.5 million for the 2018 fourth quarter. The net interest margin for the 2019 fourth quarter was 3.66%, compared to 3.76% for the same period of 2018.
For the 2019 full year, noninterest income increased 29.9% to $4.8 million, compared to $3.7 million for the same period last year. Noninterest income for the 2019 fourth quarter was $1.3 million, compared to $1.0 million for the 2018 fourth quarter.
For the 2019 full year, noninterest expense increased 4.5% to $30.0 million, compared to $28.7 million last year. For the 2019 fourth quarter, noninterest expense was $7.4 million, compared to $7.2 million for the same period last year.
"We have remained focused on managing risk and pricing on loans, while prudently controlling our funding costs on deposits," said Donald L. Stacy, Chief Financial Officer. "During the 2019 fourth quarter charge-offs were higher as a result of charging off $566,000 of acquired student loans during the quarter. We believe this was a one-time issue, and as our nonperforming assets at December 31, 2019 indicate, we expect charge-offs will return to more historical levels during the 2020 first quarter. Looking at our deposits, I am encouraged by the growth we experienced in core deposits during the fourth quarter, and we ended the quarter with a loan-to-deposit ratio of 96.4% at December 31, 2019 compared to 97.6% at December 31, 2018."
Balance Sheet
Total assets at December 31, 2019, decreased 5.3% to $1.18 billion, from $1.25 billion at December 31, 2018. Net loans at December 31, 2019, were $977.5 million, compared to $984.7 million at December 31, 2018. The 0.7% year-over-year decrease in total net loans was a result of a 14.2% decline in consumer installment loans, and a 5.7% decline in commercial real estate loans, partially offset by an 11.5% increase in real estate construction loans, a 6.8% increase in commercial and industrial loans, and a 3.1% increase in residential real estate loans.
Total deposits at December 31, 2019, were $1.02 billion, compared to $1.02 billion at December 31, 2018. The 0.5% year-over-year increase in deposits was primarily a result of higher time deposits and interest-bearing deposits. The investment portfolio, which is entirely classified as available for sale, was $105.7 million at December 31, 2019, compared with $98.3 million at December 31, 2018.
Stockholders' Equity and Dividends
At December 31, 2019, stockholders' equity increased 7.4% to $137.8 million, compared to $128.3 million at December 31, 2018. On a per share basis, shareholders' equity at December 31, 2019, was a record $21.45 compared to $19.77 at the same period last year.
At December 31, 2019, tangible stockholders' equity(1) increased 8.9% to $120.6 million, compared to $110.8 million at December 31, 2018. On a per share basis, tangible stockholders' equity(1) was $18.78 at December 31, 2019, compared to $17.08 at December 31, 2018.
For the 2019 full year, the company declared cash dividends of $0.57 per share, compared to $0.59 per share for the same period last year. The dividend payout ratio for the 2019 twelve-month period was 28.99%. At December 31, 2019, the company had an equity to assets leverage ratio of 11.65%, compared to 10.28% at December 31, 2018.
Asset Quality
The provision for loan losses for the 2019 fourth quarter was $460,000 versus $210,000 for the same period last year. Nonperforming assets at December 31, 2019, were $8.8 million, compared to $7.8 million at December 31, 2018. Net charge-offs for the 2019 fourth quarter were $693,000, or 0.28% of average loans, annualized, compared to $276,000, or 0.11% of average loans, annualized at December 31, 2018.
The provision for loan losses for the year ended December 31, 2019 was $890,000 compared to $840,000 for the year ended December 31, 2018. For the 2019 twelve-month period, net charge-offs were $1.6 million, or 0.16% of average loans, compared to $602,000, or 0.06% of average loans for the 2018 twelve-month period. The allowance for loan losses at December 31, 2019, stood at $6.8 million, or 0.69% of total loans, compared to $7.4 million or 0.75% of total loans at December 31, 2018.
About Middlefield Banc Corp.
Middlefield Banc Corp., headquartered in Middlefield, Ohio, is the bank holding company of The Middlefield Banking Company with total assets of $1.18 billion at December 31, 2019. The bank operates 16 full-service banking centers and an LPL Financial® brokerage office serving Beachwood, Chardon, Cortland, Dublin, Garrettsville, Mantua, Middlefield, Newbury, Orwell, Plain City, Powell, Solon, Sunbury, Twinsburg, and Westerville. The Bank also operates a Loan Production Office in Mentor, Ohio.
Additional information is available at www.middlefieldbank.bank.
(1)This press release includes disclosure of Middlefield Banc Corp.'s tangible book value per share and return on average tangible equity, which are financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed by GAAP. Middlefield Banc Corp. believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Middlefield Banc Corp.'s marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. The reconciliations of non-GAAP financial measures are included in the tables following Consolidated Financial Highlights below.
This press release of Middlefield Banc Corp. and the reports Middlefield Banc Corp. files with the Securities and Exchange Commission often contain "forward-looking statements" relating to present or future trends or factors affecting the banking industry and, specifically, the financial operations, markets and products of Middlefield Banc Corp. These forward-looking statements involve certain risks and uncertainties. There are a number of important factors that could cause Middlefield Banc Corp.'s future results to differ materially from historical performance or projected performance. These factors include, but are not limited to: (1) a significant increase in competitive pressures among financial institutions; (2) changes in the interest rate environment that may reduce interest margins; (3) changes in prepayment speeds, charge-offs and loan loss provisions; (4) less favorable than expected general economic conditions; (5) legislative or regulatory changes that may adversely affect businesses in which Middlefield Banc Corp. is engaged; (6) technological issues which may adversely affect Middlefield Banc Corp.'s financial operations or customers; (7) changes in the securities markets; or (8) risk factors mentioned in the reports and registration statements Middlefield Banc Corp. files with the Securities and Exchange Commission. Middlefield Banc Corp. undertakes no obligation to release revisions to these forward-looking statements or to reflect events or circumstances after the date of this press release.
MIDDLEFIELD BANC CORP. | ||||||||||||||||||||
Consolidated Selected Financial Highlights | ||||||||||||||||||||
(Dollar amounts in thousands) | ||||||||||||||||||||
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
||||||||||||
Balance Sheets (period end) | 2019 |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
|||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | $ |
35,113 |
|
$ |
118,956 |
|
$ |
133,372 |
|
$ |
121,045 |
|
$ |
107,933 |
|
|||||
Federal funds sold | - |
|
1,069 |
|
2,010 |
|
- |
|
- |
|
||||||||||
Cash and cash equivalents | 35,113 |
|
120,025 |
|
135,382 |
|
121,045 |
|
107,933 |
|
||||||||||
Equity securities, at fair value | 710 |
|
628 |
|
660 |
|
674 |
|
616 |
|
||||||||||
Investment securities available for sale, at fair value | 105,733 |
|
105,041 |
|
98,809 |
|
98,114 |
|
98,322 |
|
||||||||||
Loans held for sale | 1,220 |
|
791 |
|
431 |
|
1,230 |
|
597 |
|
||||||||||
Loans | 984,258 |
|
999,282 |
|
998,232 |
|
1,004,484 |
|
992,109 |
|
||||||||||
Less allowance for loan and lease losses | 6,768 |
|
7,001 |
|
7,304 |
|
7,206 |
|
7,428 |
|
||||||||||
Net loans | 977,490 |
|
992,281 |
|
990,928 |
|
997,278 |
|
984,681 |
|
||||||||||
Premises and equipment, net | 17,874 |
|
17,182 |
|
16,788 |
|
15,741 |
|
13,003 |
|
||||||||||
Goodwill | 15,071 |
|
15,071 |
|
15,071 |
|
15,071 |
|
15,071 |
|
||||||||||
Core deposit intangibles | 2,056 |
|
2,141 |
|
2,227 |
|
2,312 |
|
2,397 |
|
||||||||||
Bank-owned life insurance | 16,511 |
|
16,403 |
|
16,294 |
|
16,185 |
|
16,080 |
|
||||||||||
Accrued interest receivable and other assets | 10,697 |
|
11,015 |
|
11,832 |
|
13,285 |
|
9,698 |
|
||||||||||
TOTAL ASSETS | $ |
1,182,475 |
|
$ |
1,280,578 |
|
$ |
1,288,422 |
|
$ |
1,280,935 |
|
$ |
1,248,398 |
|
|||||
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
||||||||||||
2019 |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
||||||||||||
LIABILITIES | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest-bearing demand | $ |
191,370 |
|
$ |
199,235 |
|
$ |
198,817 |
|
$ |
194,298 |
|
$ |
203,410 |
|
|||||
Interest-bearing demand | 107,844 |
|
107,033 |
|
94,266 |
|
107,246 |
|
92,104 |
|
||||||||||
Money market | 160,826 |
|
155,419 |
|
152,885 |
|
178,668 |
|
196,685 |
|
||||||||||
Savings | 192,003 |
|
182,005 |
|
194,505 |
|
184,662 |
|
222,954 |
|
||||||||||
Time | 368,800 |
|
390,721 |
|
411,034 |
|
375,357 |
|
300,914 |
|
||||||||||
Total deposits | 1,020,843 |
|
1,034,413 |
|
1,051,507 |
|
1,040,231 |
|
1,016,067 |
|
||||||||||
Short-term borrowings | 5,075 |
|
92,000 |
|
85,000 |
|
91,000 |
|
90,398 |
|
||||||||||
Other borrowings | 12,750 |
|
12,359 |
|
12,449 |
|
11,518 |
|
8,803 |
|
||||||||||
Accrued interest payable and other liabilities | 6,032 |
|
5,893 |
|
5,206 |
|
6,487 |
|
4,840 |
|
||||||||||
TOTAL LIABILITIES | 1,044,700 |
|
1,144,665 |
|
1,154,162 |
|
1,149,236 |
|
1,120,108 |
|
||||||||||
STOCKHOLDERS' EQUITY * | ||||||||||||||||||||
Common stock, no par value; 10,000,000 shares authorized, 7,294,792 shares issued, 6,423,630 shares outstanding as of December 31, 2019 | 86,617 |
|
86,617 |
|
86,590 |
|
86,437 |
|
85,925 |
|
||||||||||
Retained earnings | 65,063 |
|
62,886 |
|
60,517 |
|
58,139 |
|
56,037 |
|
||||||||||
Accumulated other comprehensive income (loss) | 1,842 |
|
2,157 |
|
1,377 |
|
641 |
|
(154 |
) |
||||||||||
Treasury stock, at cost; 871,162 shares as of December 31, 2019 | (15,747 |
) |
(15,747 |
) |
(14,224 |
) |
(13,518 |
) |
(13,518 |
) |
||||||||||
TOTAL STOCKHOLDERS' EQUITY | 137,775 |
|
135,913 |
|
134,260 |
|
131,699 |
|
128,290 |
|
||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ |
1,182,475 |
|
$ |
1,280,578 |
|
$ |
1,288,422 |
|
$ |
1,280,935 |
|
$ |
1,248,398 |
|
* All share and per share information has been adjusted for a two-for-one stock split completed on November 8, 2019 |
MIDDLEFIELD BANC CORP. | ||||||||||||||||||||||||||
Consolidated Selected Financial Highlights | ||||||||||||||||||||||||||
(Dollar amounts in thousands) | ||||||||||||||||||||||||||
For the Three Months Ended |
|
For the Twelve Months Ended |
||||||||||||||||||||||||
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
December 31, |
|
December 31, |
||||||||||||||
Statements of Income | 2019 |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|||||||||||||
INTEREST AND DIVIDEND INCOME | ||||||||||||||||||||||||||
Interest and fees on loans | $ |
12,392 |
$ |
12,804 |
|
$ |
12,706 |
|
$ |
12,488 |
$ |
12,467 |
|
$ |
50,390 |
$ |
46,576 |
|
||||||||
Interest-earning deposits in other institutions | 124 |
193 |
|
169 |
|
187 |
146 |
|
673 |
558 |
|
|||||||||||||||
Federal funds sold | 22 |
24 |
|
25 |
|
7 |
17 |
|
78 |
46 |
|
|||||||||||||||
Investment securities: | ||||||||||||||||||||||||||
Taxable interest | 197 |
206 |
|
214 |
|
179 |
182 |
|
796 |
688 |
|
|||||||||||||||
Tax-exempt interest | 661 |
613 |
|
553 |
|
565 |
589 |
|
2,392 |
2,262 |
|
|||||||||||||||
Dividends on stock | 40 |
45 |
|
53 |
|
58 |
58 |
|
196 |
227 |
|
|||||||||||||||
Total interest and dividend income | 13,436 |
13,885 |
|
13,720 |
|
13,484 |
13,459 |
|
54,525 |
50,357 |
|
|||||||||||||||
INTEREST EXPENSE | ||||||||||||||||||||||||||
Deposits | 3,014 |
3,173 |
|
3,277 |
|
2,945 |
2,828 |
|
12,409 |
8,631 |
|
|||||||||||||||
Short-term borrowings | 34 |
42 |
|
79 |
|
213 |
78 |
|
368 |
842 |
|
|||||||||||||||
Other borrowings | 80 |
92 |
|
95 |
|
96 |
92 |
|
363 |
436 |
|
|||||||||||||||
Total interest expense | 3,128 |
3,307 |
|
3,451 |
|
3,254 |
2,998 |
|
13,140 |
9,909 |
|
|||||||||||||||
NET INTEREST INCOME | 10,308 |
10,578 |
|
10,269 |
|
10,230 |
10,461 |
|
41,385 |
40,448 |
|
|||||||||||||||
Provision for loan losses | 460 |
80 |
|
110 |
|
240 |
210 |
|
890 |
840 |
|
|||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 9,848 |
10,498 |
|
10,159 |
|
9,990 |
10,251 |
|
40,495 |
39,608 |
|
|||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||||||||
Service charges on deposit accounts | 577 |
571 |
|
530 |
|
508 |
498 |
|
2,186 |
1,914 |
|
|||||||||||||||
Investment securities gains on sale, net | - |
4 |
|
190 |
|
- |
- |
|
194 |
- |
|
|||||||||||||||
Gain (loss) on equity securities | 82 |
(32 |
) |
(14 |
) |
58 |
(55 |
) |
94 |
(9 |
) |
|||||||||||||||
Earnings on bank-owned life insurance | 108 |
109 |
|
109 |
|
105 |
110 |
|
431 |
428 |
|
|||||||||||||||
Gains on sale of loans | 148 |
128 |
|
98 |
|
59 |
67 |
|
433 |
231 |
|
|||||||||||||||
Other income | 390 |
325 |
|
386 |
|
402 |
357 |
|
1,503 |
1,164 |
|
|||||||||||||||
Total noninterest income | 1,305 |
1,105 |
|
1,299 |
|
1,132 |
977 |
|
4,841 |
3,728 |
|
|||||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||||||||||||
Salaries and employee benefits | 4,049 |
4,272 |
|
4,078 |
|
4,124 |
4,065 |
|
16,523 |
15,749 |
|
|||||||||||||||
Occupancy expense | 580 |
535 |
|
496 |
|
553 |
465 |
|
2,164 |
1,933 |
|
|||||||||||||||
Equipment expense | 270 |
244 |
|
291 |
|
235 |
273 |
|
1,040 |
969 |
|
|||||||||||||||
Data processing costs | 614 |
580 |
|
549 |
|
465 |
446 |
|
2,208 |
1,806 |
|
|||||||||||||||
Ohio state franchise tax | 262 |
262 |
|
261 |
|
259 |
220 |
|
1,044 |
823 |
|
|||||||||||||||
Federal deposit insurance expense | - |
- |
|
100 |
|
130 |
100 |
|
230 |
550 |
|
|||||||||||||||
Professional fees | 448 |
401 |
|
403 |
|
431 |
364 |
|
1,683 |
1,482 |
|
|||||||||||||||
Advertising expense | 128 |
202 |
|
200 |
|
203 |
227 |
|
733 |
921 |
|
|||||||||||||||
Software amortization expense | 159 |
182 |
|
152 |
|
145 |
145 |
|
638 |
605 |
|
|||||||||||||||
Core deposit intangible amortization | 85 |
86 |
|
85 |
|
85 |
87 |
|
341 |
352 |
|
|||||||||||||||
Other expense | 783 |
909 |
|
867 |
|
870 |
851 |
|
3,429 |
3,553 |
|
|||||||||||||||
Total noninterest expense | 7,378 |
7,673 |
|
7,482 |
|
7,500 |
7,243 |
|
30,033 |
28,743 |
|
|||||||||||||||
Income before income taxes | 3,775 |
3,930 |
|
3,976 |
|
3,622 |
3,985 |
|
15,303 |
14,593 |
|
|||||||||||||||
Income taxes | 634 |
661 |
|
686 |
|
611 |
560 |
|
2,592 |
2,162 |
|
|||||||||||||||
NET INCOME | $ |
3,141 |
$ |
3,269 |
|
$ |
3,290 |
|
$ |
3,011 |
$ |
3,425 |
|
$ |
12,711 |
$ |
12,431 |
|
MIDDLEFIELD BANC CORP. | ||||||||||||||||||||||||||||
Consolidated Selected Financial Highlights | ||||||||||||||||||||||||||||
(Dollar amounts in thousands, except per share and share amounts) | ||||||||||||||||||||||||||||
For the Three Months Ended |
|
For the Twelve Months Ended |
||||||||||||||||||||||||||
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
December 31, |
|
December 31, |
||||||||||||||||
2019 |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||||||||||
Per common share data (5) | ||||||||||||||||||||||||||||
Net income per common share - basic | $ |
0.48 |
|
$ |
0.51 |
|
$ |
0.51 |
|
$ |
0.46 |
|
$ |
0.53 |
|
$ |
1.96 |
|
$ |
1.92 |
|
|||||||
Net income per common share - diluted | $ |
0.49 |
|
$ |
0.50 |
|
$ |
0.50 |
|
$ |
0.46 |
|
$ |
0.53 |
|
$ |
1.95 |
|
$ |
1.91 |
|
|||||||
Dividends declared per share | $ |
0.15 |
|
$ |
0.14 |
|
$ |
0.14 |
|
$ |
0.14 |
|
$ |
0.14 |
|
$ |
0.57 |
|
$ |
0.59 |
|
|||||||
Book value per share (period end) | $ |
21.45 |
|
$ |
21.16 |
|
$ |
20.70 |
|
$ |
20.22 |
|
$ |
19.77 |
|
$ |
21.45 |
|
$ |
19.77 |
|
|||||||
Tangible book value per share (period end) (2) (3) | $ |
18.78 |
|
$ |
18.48 |
|
$ |
18.04 |
|
$ |
17.55 |
|
$ |
17.08 |
|
$ |
18.78 |
|
$ |
17.08 |
|
|||||||
Dividends declared | $ |
964 |
|
$ |
900 |
|
$ |
912 |
|
$ |
909 |
|
$ |
908 |
|
$ |
3,685 |
|
$ |
3,779 |
|
|||||||
Dividend yield | 2.28 |
% |
2.37 |
% |
2.74 |
% |
2.76 |
% |
2.62 |
% |
2.18 |
% |
2.76 |
% |
||||||||||||||
Dividend payout ratio | 30.69 |
% |
27.53 |
% |
27.72 |
% |
30.19 |
% |
26.51 |
% |
28.99 |
% |
30.40 |
% |
||||||||||||||
Average shares outstanding - basic | 6,423,543 |
|
6,458,258 |
|
6,502,508 |
|
6,498,278 |
|
6,478,360 |
|
6,470,408 |
|
6,459,908 |
|
||||||||||||||
Average shares outstanding - diluted | 6,455,387 |
|
6,479,066 |
|
6,514,946 |
|
6,510,568 |
|
6,500,298 |
|
6,502,806 |
|
6,487,814 |
|
||||||||||||||
Period ending shares outstanding | 6,423,630 |
|
6,423,130 |
|
6,485,170 |
|
6,512,740 |
|
6,488,664 |
|
6,423,630 |
|
6,488,664 |
|
||||||||||||||
Selected ratios | ||||||||||||||||||||||||||||
Return on average assets | 1.04 |
% |
1.07 |
% |
1.09 |
% |
1.01 |
% |
1.15 |
% |
1.05 |
% |
1.09 |
% |
||||||||||||||
Return on average equity | 8.87 |
% |
9.41 |
% |
9.79 |
% |
9.36 |
% |
10.52 |
% |
9.35 |
% |
9.94 |
% |
||||||||||||||
Return on average tangible common equity (2) (4) | 10.11 |
% |
10.76 |
% |
11.23 |
% |
10.80 |
% |
12.17 |
% |
10.72 |
% |
11.57 |
% |
||||||||||||||
Efficiency (1) | 61.75 |
% |
63.93 |
% |
63.03 |
% |
64.30 |
% |
61.60 |
% |
63.25 |
% |
63.29 |
% |
||||||||||||||
Equity to assets at period end | 11.65 |
% |
10.61 |
% |
10.42 |
% |
10.28 |
% |
10.28 |
% |
11.65 |
% |
10.28 |
% |
||||||||||||||
Noninterest expense to average assets | 0.61 |
% |
0.64 |
% |
0.62 |
% |
0.62 |
% |
0.62 |
% |
2.49 |
% |
2.51 |
% |
(1) The efficiency ratio is calculated by dividing noninterest expense less amortization of intangibles by the sum of net interest income on a fully taxable equivalent basis plus noninterest income | ||||||||||||||
(2) See reconciliation of non-GAAP measures below | ||||||||||||||
(3) Calculated by dividing tangible common equity by shares outstanding | ||||||||||||||
(4) Calculated by dividing annualized net income for each period by average tangible common equity | ||||||||||||||
(5) All share and per share information has been adjusted for a two-for-one stock split completed on November 8, 2019 |
MIDDLEFIELD BANC CORP. | |||||||||||||||||||||||||||
Consolidated Selected Financial Highlights | |||||||||||||||||||||||||||
For the Three Months Ended |
|
|
For the Twelve Months Ended |
||||||||||||||||||||||||
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
December 31, |
|
|
December 31, |
|||||||||
2019 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|||||||||
Yields | |||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||
Loans receivable (2) | 4.97 |
% |
5.09 |
% |
5.08 |
% |
5.07 |
% |
5.09 |
% |
5.06 |
% |
4.91 |
% |
|||||||||||||
Investment securities (2) | 3.94 |
% |
3.80 |
% |
3.79 |
% |
3.80 |
% |
3.73 |
% |
3.77 |
% |
3.67 |
% |
|||||||||||||
Interest-earning deposits with other banks | 1.65 |
% |
2.31 |
% |
2.21 |
% |
2.26 |
% |
2.08 |
% |
2.11 |
% |
1.90 |
% |
|||||||||||||
Total interest-earning assets | 4.75 |
% |
4.86 |
% |
4.86 |
% |
4.85 |
% |
4.82 |
% |
4.83 |
% |
4.68 |
% |
|||||||||||||
Deposits: | |||||||||||||||||||||||||||
Interest-bearing demand deposits | 0.41 |
% |
0.39 |
% |
0.36 |
% |
0.30 |
% |
0.31 |
% |
0.36 |
% |
0.23 |
% |
|||||||||||||
Money market deposits | 1.41 |
% |
1.43 |
% |
1.40 |
% |
1.58 |
% |
1.56 |
% |
1.46 |
% |
1.11 |
% |
|||||||||||||
Savings deposits | 0.62 |
% |
0.68 |
% |
0.69 |
% |
0.81 |
% |
0.85 |
% |
0.70 |
% |
0.65 |
% |
|||||||||||||
Certificates of deposit | 2.18 |
% |
2.18 |
% |
2.35 |
% |
2.15 |
% |
1.99 |
% |
2.22 |
% |
1.83 |
% |
|||||||||||||
Total interest-bearing deposits | 1.43 |
% |
1.48 |
% |
1.56 |
% |
1.46 |
% |
1.38 |
% |
1.48 |
% |
1.11 |
% |
|||||||||||||
Non-Deposit Funding: | |||||||||||||||||||||||||||
Borrowings | 2.52 |
% |
3.03 |
% |
2.70 |
% |
2.57 |
% |
3.54 |
% |
2.63 |
% |
2.20 |
% |
|||||||||||||
Total interest-bearing liabilities | 1.46 |
% |
1.51 |
% |
1.59 |
% |
1.52 |
% |
1.43 |
% |
1.52 |
% |
1.18 |
% |
|||||||||||||
Cost of deposits | 1.15 |
% |
1.20 |
% |
1.26 |
% |
1.17 |
% |
1.09 |
% |
1.20 |
% |
0.90 |
% |
|||||||||||||
Cost of funds | 1.17 |
% |
1.23 |
% |
1.29 |
% |
1.24 |
% |
1.14 |
% |
1.23 |
% |
0.97 |
% |
|||||||||||||
Net interest margin (1) | 3.66 |
% |
3.72 |
% |
3.65 |
% |
3.70 |
% |
3.76 |
% |
3.68 |
% |
3.77 |
% |
(1) Net interest margin represents net interest income as a percentage of average interest-earning assets. | ||||||||
(2) Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were determined using an effective tax rate of 21%. |
For the Three Months Ended |
||||||||||||||||||||
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
||||||||||||
End of Period Loan Balances | 2019 |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
|||||||||||
(Dollar amounts in thousands) | ||||||||||||||||||||
Commercial and industrial | $ |
89,527 |
|
$ |
85,861 |
|
$ |
85,520 |
|
$ |
85,756 |
|
$ |
83,857 |
|
|||||
Real estate - construction | 63,246 |
|
57,564 |
|
54,619 |
|
58,019 |
|
56,731 |
|
||||||||||
Real estate - mortgage: | ||||||||||||||||||||
Residential | 347,047 |
|
347,739 |
|
345,830 |
|
340,483 |
|
336,487 |
|
||||||||||
Commercial | 470,027 |
|
492,914 |
|
496,300 |
|
504,289 |
|
498,247 |
|
||||||||||
Consumer installment | 14,411 |
|
15,204 |
|
15,963 |
|
15,937 |
|
16,787 |
|
||||||||||
Total | $ |
984,258 |
|
$ |
999,282 |
|
$ |
998,232 |
|
$ |
1,004,484 |
|
$ |
992,109 |
|
|||||
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
||||||||||||
Asset quality data | 2019 |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
|||||||||||
(Dollar amounts in thousands) | ||||||||||||||||||||
Nonaccrual loans | $ |
8,689 |
|
$ |
10,053 |
|
$ |
10,671 |
|
$ |
10,472 |
|
$ |
6,595 |
|
|||||
90 day past due and accruing | - |
|
- |
|
58 |
|
- |
|
945 |
|
||||||||||
Nonperforming loans (3) | 8,689 |
|
10,053 |
|
10,729 |
|
10,472 |
|
7,540 |
|
||||||||||
Other real estate owned | 155 |
|
89 |
|
89 |
|
126 |
|
270 |
|
||||||||||
Nonperforming assets | $ |
8,844 |
|
$ |
10,142 |
|
$ |
10,818 |
|
$ |
10,598 |
|
$ |
7,810 |
|
|||||
Allowance for loan losses | $ |
6,768 |
|
$ |
7,001 |
|
$ |
7,304 |
|
$ |
7,206 |
|
$ |
7,428 |
|
|||||
Allowance for loan losses/total loans | 0.69 |
% |
0.70 |
% |
0.73 |
% |
0.72 |
% |
0.75 |
% |
||||||||||
Net charge-offs: | ||||||||||||||||||||
Quarter-to-date | $ |
693 |
|
$ |
383 |
|
$ |
12 |
|
$ |
462 |
|
$ |
276 |
|
|||||
Year-to-date | 1,550 |
|
857 |
|
474 |
|
462 |
|
602 |
|
||||||||||
Net charge-offs to average loans, annualized: | ||||||||||||||||||||
Quarter-to-date | 0.28 |
% |
0.15 |
% |
0.00 |
% |
0.19 |
% |
0.11 |
% |
||||||||||
Year-to-date | 0.16 |
% |
0.11 |
% |
0.10 |
% |
0.19 |
% |
0.06 |
% |
||||||||||
Nonperforming loans/total loans | 0.88 |
% |
1.01 |
% |
1.07 |
% |
1.04 |
% |
0.76 |
% |
||||||||||
Allowance for loan losses/nonperforming loans | 77.89 |
% |
69.64 |
% |
68.08 |
% |
68.81 |
% |
98.51 |
% |
||||||||||
Nonperforming assets/total assets | 0.75 |
% |
0.79 |
% |
0.84 |
% |
0.83 |
% |
0.63 |
% |
(3) Nonperforming loans exclude troubled debt restructurings that are performing in accordance with their terms over a prescribed period of time |
Reconciliation of Common Stockholders' Equity to Tangible Common Equity * | For the Three Months Ended |
|
For the Twelve Months Ended |
|||||||||||||||||||||||||
(Dollar amounts in thousands) | December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|||||||||||||||
2019 |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||||||||||
Stockholders' Equity | $ |
137,775 |
|
$ |
135,913 |
|
$ |
134,260 |
|
$ |
131,699 |
|
$ |
128,290 |
|
$ |
137,775 |
|
$ |
128,290 |
|
|||||||
Less Goodwill and other intangibles | 17,127 |
|
17,212 |
|
17,298 |
|
17,383 |
|
17,468 |
|
17,127 |
|
17,468 |
|
||||||||||||||
Tangible Common Equity | $ |
120,648 |
|
$ |
118,701 |
|
$ |
116,962 |
|
$ |
114,316 |
|
$ |
110,822 |
|
$ |
120,648 |
|
$ |
110,822 |
|
|||||||
Shares outstanding | 6,423,630 |
|
6,423,130 |
|
6,485,170 |
|
6,512,740 |
|
6,488,664 |
|
6,423,630 |
|
6,488,664 |
|
||||||||||||||
Tangible book value per share | $ |
18.78 |
|
$ |
18.48 |
|
$ |
18.04 |
|
$ |
17.55 |
|
$ |
17.08 |
|
$ |
18.78 |
|
$ |
17.08 |
|
|||||||
Reconciliation of Average Equity to Return on Average Tangible Common Equity | For the Three Months Ended |
|
For the Twelve Months Ended |
|||||||||||||||||||||||||
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
December 31, |
|
December 31, |
||||||||||||||||
2019 |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||||||||||
Average Stockholders' Equity | $ |
140,475 |
|
$ |
137,843 |
|
$ |
134,836 |
|
$ |
130,450 |
|
$ |
129,208 |
|
$ |
135,900 |
|
$ |
125,074 |
|
|||||||
Less Average Goodwill and other intangibles | 17,169 |
|
17,254 |
|
17,339 |
|
17,422 |
|
17,510 |
|
17,296 |
|
17,641 |
|
||||||||||||||
Average Tangible Common Equity | $ |
123,306 |
|
$ |
120,589 |
|
$ |
117,497 |
|
$ |
113,028 |
|
$ |
111,698 |
|
$ |
118,604 |
|
$ |
107,433 |
|
|||||||
Net income | $ |
3,141 |
|
3,269 |
|
3,290 |
|
3,011 |
|
3,425 |
|
12,711 |
|
12,431 |
|
|||||||||||||
Return on average tangible common equity (annualized) | 10.11 |
% |
10.76 |
% |
11.23 |
% |
10.80 |
% |
12.17 |
% |
10.72 |
% |
11.57 |
% |
* All share and per share information has been adjusted for a two-for-one stock split completed on November 8, 2019 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20200124005030/en/
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