2014

Middlefield Banc Corp. First Quarter Earnings Increase 52% to $1.5 million

MIDDLEFIELD, Ohio, April 24, 2012 /PRNewswire/ -- Middlefield Banc Corp. (OTCQB:  MBCN), reported net income of $1.523 million for the quarter ended March 31, 2012, compared to $1.002 million for the quarter ended March 31, 2011, an increase of 52%.  On a per share basis, the Company's diluted earnings were $0.86 for the 2012 first quarter, as compared to $0.62 for the comparable period of 2011.

Annualized returns on average equity ("ROE") and average assets ("ROA") for the 2012 quarter were 12.81% and 0.94%, respectively, compared with 10.50% and 0.63% for the first quarter of 2011.

For the first three months of 2012, net interest income increased $528,000, or 10.5% from the same period last year.  While interest income experienced a decline of $127,000, or 1.7%, interest expense was $655,000, or 28.0%, lower in the 2012 quarter as compared to the same period of 2011.  The net interest margin for the three months ended March 31, 2012 was 3.89%, compared to 3.68% for the same period of the prior year.

For the three months ended March 31, 2012, management provided $600,000 to the allowance for loan losses, which compares to $865,000 for the same period of 2011.  Net charge-offs for the 2012 first quarter were $152,000, or 0.04% of average loans.  The allowance for loan losses at March 31, 2012 stood at $7.3 million, or 1.80% of total loans.  At March 31, 2011, the allowance for loan losses was $6.7 million, representing 1.78% of total loans.  Based on the evaluation of the adequacy of the allowance for loan losses, management believes that, at March 31, 2012, the allowance for loan losses was adequate and reflects probable losses in the loan portfolio.

Noninterest income for the first quarter of 2012 was $794,000.  This was a modest increase of 13.6% from the comparable period of 2011.  The primary factors in this increase were higher revenues from investment services and fees generated by increased debit card usage.  Although deposit service charges increased year-over-year, the growth was tempered by rules eliminating certain automatic overdraft protection arrangements and the ability to charge fees for the payment of overdrafts for debit and ATM card transactions.  

Noninterest expense for the first quarter of 2012 totaled $3.8 million, an increase of $77,000, or 2.1% from the same period last year.  Salaries and benefits, the company's largest noninterest expense, contributed $60,000 to the increase.  This increase is largely related to the growth of the company, including increased staffing levels in regulatory compliance.  Higher data processing costs and FDIC insurance expense were directly related to the growth of the company since the first quarter of 2011.  The limited growth in non-interest expense reflects management's on-going efforts to control expenses.

"Having finished a record earnings year in 2011, we are very pleased to report continued strong earnings during the first quarter of 2012," stated Thomas G. Caldwell, President and Chief Executive Officer, "We enjoyed positive growth in net interest income, while maintaining our focus on managing our non-interest expenses."

"Our efforts during the quarter are further evidenced by our efficiency ratio, which is very positive for a community-based financial company.  We are especially pleased that we achieved these results even as we increased staffing in an effort to address the increasing regulatory burden.  Our focus remains on delivering excellence in customer service, increasing value to our shareholders, and operating our company in accordance with safe and sound banking practices," Caldwell concluded.

Balance Sheet Growth

The company's total assets as of March 31, 2012 stood at $657.9 million, an increase of 0.5% over the $654.6 million in total assets reported at December 31, 2011.  Net loans at March 31, 2012, were $397.0 million, up $1.9 million, or 0.5%, over the $395.1 million reported at December 31, 2011.  Total deposits at the end of the first quarter 2012 were $583.9 million, or 0.5 % greater than the deposit level of $581.0 million at December 31, 2011.  Stockholders' equity at March 31, 2012, was $48.5 million.  Tangible book value per share as of March 31, 2012, was $24.78.

Dividends   

During the first quarter of both 2012 and 2011, Middlefield paid cash dividends of $0.26 per share.

Middlefield Banc Corp. headquartered in Middlefield, Ohio is a multi-bank holding company with total assets of $657.9 million.  The company's lead bank, The Middlefield Banking Company, operates full service banking centers and a UVEST Financial Services® brokerage office serving Chardon, Cortland, Garrettsville, Mantua, Middlefield, Newbury, and Orwell.  The company also serves the central Ohio market through its Emerald Bank subsidiary, with offices in Dublin and Westerville, Ohio.  Additional information is available at www.middlefieldbank.com and www.emeraldbank.com

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


















March 31, 2012 and 2011 and December 31, 2011











 (unaudited)






 (unaudited)

Balance Sheet (period end)


 March 31,



 December 31,



 March 31,

(Dollar amounts in thousands)


2012



2011



2011










ASSETS









   Cash and due from banks

$

22,022


$

15,730


$

11,555

   Federal funds sold


23,587



18,660



30,581

      Cash and cash equivalents


45,609



34,390



42,136

   Investment securities available for sale


183,770



193,977



189,640

   Loans


404,269



401,880



376,529

   Less allowance for loan losses


7,267



6,819



6,685

      Net loans


397,002



395,061



369,844

   Premises and equipment


8,368



8,264



8,053

   Goodwill


4,559



4,559



4,559

   Bank-owned life insurance


8,326



8,257



8,052

   Accrued interest and other assets


10,315



10,043



13,553










Total Assets

$

657,949


$

654,551


$

635,837










LIABILITIES









   Noninterest-bearing demand

$

64,517


$

63,348


$

52,831

   Interest-bearing demand


63,509



55,853



54,371

   Money market


71,047



75,621



75,046

   Savings


172,236



167,207



155,945

   Time


212,633



218,933



230,411

      Total deposits


583,942



580,962



568,604

   Short-term borrowings


7,365



7,392



7,301

   Other borrowings


16,561



16,831



18,956

   Other liabilities


1,622



2,113



1,693

     Total Liabilities


609,490



607,298



596,554










STOCKHOLDERS' EQUITY









   Common stock


31,420



31,240



29,286

   Retained earnings


19,272



18,206



16,418

   Accumulated other comprehensive income


4,501



4,541



313

   Treasury stock


(6,734)



(6,734)



(6,734)

     Total Stockholders' Equity


48,459



47,253



39,283










Total Liabilities and Stockholders' Equity

$

657,949


$

654,551


$

635,837

 

MIDDLEFIELD BANC CORP.






Consolidated Selected Financial Highlights






March 31, 2012 and 2011






(Dollar amounts in thousands)






(unaudited)







For the Three Months Ended

Income Statement

March31,



2012



2011







INTEREST INCOME






     Interest and fees on loans

$

5,537


$

5,301

     Interest-bearing deposits in other institutions


4



2

     Federal funds sold


3



9

     Investment securities:






          Taxable interest


915



1,323

          Tax-exempt interest


747



698

     Dividends on FHLB stock


26



26

                   Total interest income


7,232



7,359







INTEREST EXPENSE






     Deposits


1,497



2,037

     Short term borrowings


59



59

     Other borrowings


84



109

     Trust preferred securities


46



136

                   Total interest expense


1,686



2,341







NET INTEREST INCOME


5,546



5,018







Provision for loan losses


600



865







NET INTEREST INCOME AFTER






   PROVISION FOR LOAN LOSSES


4,946



4,153







NONINTEREST INCOME






     Service charges on deposit accounts


431



428

     Net securities gains


-



15

     Earnings on bank-owned life insurance


68



73

     Other income


295



183

                    Total noninterest income


794



699







NONINTEREST EXPENSE






     Salaries and employee benefits


1,750



1,690

     Occupancy expense


248



272

     Equipment expense


170



158

     Data processing costs


199



180

     Ohio state franchise tax


129



128

     Federal deposit insurance expense


243



225

     Professional fees


214



211

     (Gain) Loss on sale of other real estate owned


27



(20)

     Other expense


802



861

                    Total noninterest expense


3,782



3,705







Income before income taxes


1,958



1,147

Income taxes


435



145

NET INCOME

$

1,523


$

1,002























MIDDLEFIELD BANC CORP.








Consolidated Selected Financial Highlights








March 31, 2012 and 2011








(unaudited)









For the Three Months Ended




March 31,





2012



2011



Per common share data








Net income per common share - basic

$

0.86


$

0.62



Net income per common share - diluted

$

0.86


$

0.62



Dividends declared

$

0.26


$

0.26



Book value per share(period end)

$

27.35


$

23.86



Tangible book value per share (period end)

$

24.78


$

21.09



Dividend payout ratio


30.01%



40.92%



Average shares outstanding - basic


1,763,982



1,621,889



Average shares outstanding -diluted


1,764,585



1,621,889



Period ending shares outstanding


1,771,687



1,646,609











Selected ratios








Return on average assets


0.94%



0.63%



Return on average equity


12.81%



10.50%



Yield on earning assets


4.99%



5.28%



Cost of interest bearing liabilities


1.26%



1.77%



Net interest spread


3.74%



3.51%



Net interest margin


3.89%



3.68%



Efficiency (1)


56.24%



60.97%



Equity to assets at period end


7.37%



6.18%











(1)  The efficiency ratio is calculated by dividing non-interest expense less amortization of intangibles

      by the sum of net interest income on a fully taxable equivalent basis plus non-interest income.























 March 31,



 March 31,





Asset quality data


2012



2011





(Dollar amounts in thousands)




















Non-accrual loans

$

15,641


$

19,017





Troubled debt restructuring


926



2,942





90 day past due and accruing


1,110



55





Non-performing loans


17,677



22,014





Other real estate owned


2,125



2,248





Non-performing assets

$

19,802


$

24,262















Allowance for loan losses

$

7,267


$

6,685





Allowance for loan losses/total loans


1.80%



1.78%





Net charge-offs:










   Quarter-to-date

$

152


$

401





   Year-to-date


152



401





Net charge-offs to average loans










   Quarter-to-date


0.04%



0.11%





   Year-to-date


0.04%



0.11%





Non-performing loans/total loans


4.37%



5.85%





Allowance for loan losses/non-performing loans


41.11%



30.37%





 

Contact:

James R. Heslop, 2nd


Executive Vice President/Chief Operating Officer


(440) 632-1666 Ext. 3219


jheslop@middlefieldbank.com

SOURCE Middlefield Banc Corp.



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