EXHIBIT 99
[MIDDLEFIELD BANC CORP LOGO]
15985 East High Street
P. O. Box 35
Middlefield, Ohio 44062
Phone: 440/632-1666 FAX: 440/632-1700
www.middlefieldbank.com
PRESS RELEASE
Contact: | James R. Heslop, 2nd Executive Vice President/Chief Operating Officer (440) 632-1666 Ext. 3219 jheslop@middlefieldbank.com |
For Immediate Release
Middlefield Banc Corp. Reports 12% Earnings Increase for 2003
MIDDLEFIELD, OHIO, January 23, 2004 #### Middlefield Banc Corp. (Pink Sheets: MBCN) today reported net income for the fiscal year ended December 31, 2003, of $2,799,000, an increase of 11.92% over the $2,501,000 reported for 2002. Earnings per diluted share for 2003 were $2.29, which compares to 2002’s $2.06.
For the three months ended December 31, 2003, of $832,000, or $0.68 per diluted share. The fourth quarter 2003 earnings represent an increase of 12.28% over the $741,000, or $0.61 per diluted share, recorded for the quarter ended December 31, 2002.
Middlefield’s total assets ended 2003 at $262,369,000, an increase of 15.97% over the level recorded at year-end 2002 of $226,246,000. Net loans increased 10.26% to $190,359,000, while deposits grew 17.32% to $219,840,000. Stockholders’ equity at year-end 2003 was $23,504,000, an increase of 8.08% over the prior year-end.
Non-interest income for the full year showed a 29.40% increase over 2002. The primary contributing factors were increased levels of service charges and earnings on bank owned life insurance.
The increase in non-interest expense, 17.27% on a full year basis, is the result of the opening of a new banking office in Orwell, Ohio, as well as the start-up of a financial services center. An additional part of this increase was due to the implementation of an annual incentive plan applicable to all employees.
The company’s key performance ratios for the year and for the fourth quarter remained strong. Return on Average Assets (ROA) for the year and for the quarter were 1.13% and 1.26%, respectively, compared to 1.17% and 1.31% a year ago. Return on Average Equity (ROE) improved to 12.39% for the year and 14.86% for the quarter. The comparable 2002 ratios were 12.08% and 13.79%.
Thomas G. Caldwell, President and Chief Executive Officer, commented, “Recognizing all of the obstacles to net income growth that 2003 presented, we are very pleased with our results. Although we continued to experience compression of our net interest margin, we were able to grow both sides of our balance sheet, while achieving a reasonable level of earnings growth.”
“The increase in 2003 earnings following a 10.14% increase in 2002 is the result of the excellent efforts of our staff. As we continue to focus on our core business model of being a true community bank, they have stepped forward to continue to provide the best in products and service to the markets that we serve, “ continued Caldwell.
Book value at year-end 2003 was $19.21, an increase of 6.79% from the $17.98 recorded at the end of 2002. Cash dividends paid during the year totaled $0.82 per share. Additionally, a five percent stock dividend was paid during December of 2003. The comparable adjusted cash dividend during 2002 was $0.70.
Middlefield Banc Corp. is the parent company of The Middlefield Banking Company, an Ohio state-chartered bank, both of which are headquartered in Middlefield, Ohio. The Middlefield Banking Company operates six full service banking centers and a UVEST Financial Services® brokerage office serving Chardon, Garrettsville, Mantua, Middlefield, and Orwell, Ohio. For more information, please visitwww.middlefieldbank.com.
This announcement contains forward-looking statements that involve risk and uncertainties, including changes in general economic and financial market conditions and the Company’s ability to execute its business plans. Although management believes the expectations reflected in such statements are reasonable, actual results may differ materially.
Middlefield Banc Corp. | ||||||||||||
Consolidated Statements of Income | ||||||||||||
(unaudited) | ||||||||||||
For the Three Months Ended December 31, | ||||||||||||
2003 | 2002 | % Change | ||||||||||
Earnings (in 000s) | ||||||||||||
Total interest income | $ | 3,682 | $ | 3,609 | 2.02 | % | ||||||
Total interest expense | 1,393 | 1,509 | -7.69 | % | ||||||||
Net interest income | 2,289 | 2,100 | 9.00 | % | ||||||||
Provision for loan losses | 0 | 75 | -100.00 | % | ||||||||
Net interest income after provision for loan losses | 2,289 | 2,025 | 13.04 | % | ||||||||
Non-interest income | 470 | 313 | 50.16 | % | ||||||||
Security (losses) gains | 0 | 0 | 0.00 | % | ||||||||
Non-interest expense | 1,589 | 1,333 | 19.20 | % | ||||||||
Income before income tax | 1,170 | 1,005 | 16.42 | % |
Federal income taxes | 338 | 264 | 28.03 | % | ||||||||
Net income | $ | 832 | $ | 741 | 12.28 | % | ||||||
Per share (1) | ||||||||||||
Earning per common share - Basic | $ | 0.68 | $ | 0.61 | 11.81 | % | ||||||
Earning per common share - Diluted | 0.68 | 0.61 | 11.65 | % | ||||||||
Cash dividends paid | 0.21 | 0.19 | 10.25 | % | ||||||||
Shares Outstanding | ||||||||||||
Basic | 1,219,449 | 1,214,300 | 0.42 | % | ||||||||
Diluted | 1,223,652 | 1,216,811 | 0.56 | % | ||||||||
Key performance ratios | ||||||||||||
Return on average assets (ROA) | 1.26 | % | 1.31 | % | -3.82 | % | ||||||
Return on average equity (ROE) | 14.86 | % | 13.79 | % | 7.76 | % | ||||||
Net interest margin | 3.96 | % | 3.96 | % | 0.00 | % | ||||||
Yield on earning assets | 6.25 | % | 6.72 | % | -6.99 | % | ||||||
Efficiency ratio | 56.42 | % | 55.24 | % | 2.14 | % | ||||||
Net charge-offs to average loans (actual for the period) | 0.04 | % | 0.00 | % | N/A | |||||||
Net charge-offs to average loans (annualized) | 0.18 | % | 0.01 | % | 1700.00 | % |
Middlefield Banc Corp. | |||||||||||||
Consolidated Statements of Income | |||||||||||||
(unaudited) | |||||||||||||
For the Twelve Months Ended December 31, | |||||||||||||
2003 | 2002 | % Change | |||||||||||
Earnings (in 000s) | |||||||||||||
Total interest income | $ | 14,596 | $ | 14,120 | 3.37 | % | |||||||
Total interest expense | 5,725 | 6,148 | -6.88 | % | |||||||||
Net interest income | 8,871 | 7,972 | 11.28 | % | |||||||||
Provision for loan losses | 315 | 300 | 5.00 | % | |||||||||
Net interest income after | |||||||||||||
provision for loan losses | 8,556 | 7,672 | 11.52 | % | |||||||||
Non-interest income | 1,479 | 1,143 | 29.40 | % | |||||||||
Security (losses) gains | 1 | 0 | N/A | ||||||||||
Non-interest expense | 6,105 | 5,206 | 17.27 | % | |||||||||
Income before income tax | 3,931 | 3,609 | 8.92 | % | |||||||||
Federal income taxes | 1,132 | 1,108 | 2.17 | % | |||||||||
Net income | $ | 2,799 | $ | 2,501 | 11.92 | % | |||||||
Per share (1) | |||||||||||||
Earning per common share - Basic | $ | 2.29 | $ | 2.06 | 11.32 | % | |||||||
Earning per common share - Diluted | 2.29 | 2.06 | 11.27 | % | |||||||||
Cash dividends paid | 0.82 | 0.70 | 17.14 | % | |||||||||
Book Value (end of period) | 19.21 | 17.98 | 6.79 | % | |||||||||
Shares Outstanding | |||||||||||||
Basic | 1,219,476 | 1,215,237 | 0.35 | % | |||||||||
Diluted | 1,222,829 | 1,217,231 | 0.46 | % |
At period end (in 000s) | ||||||||||||
Total Assets | $ | 262,369 | $ | 226,246 | 15.97 | % | ||||||
Total deposits | 219,840 | 187,384 | 17.32 | % | ||||||||
Net loans receivable | 190,359 | 172,643 | 10.26 | % | ||||||||
Securities | 51,825 | 42,159 | 22.93 | % | ||||||||
Sharholders equity | 23,504 | 21,746 | 8.08 | % | ||||||||
Key performance ratios | ||||||||||||
Return on average assets (ROA) | 1.13 | % | 1.17 | % | -3.42 | % | ||||||
Return on average equity (ROE) | 12.39 | % | 12.08 | % | 2.57 | % | ||||||
Net interest margin | 3.87 | % | 3.99 | % | -3.01 | % | ||||||
Yield on earning assets | 6.30 | % | 6.99 | % | -9.87 | % | ||||||
Efficiency ratio | 58.98 | % | 57.12 | % | 3.26 | % | ||||||
Net charge-offs to average loans | 0.05 | % | 0.04 | % | 25.00 | % | ||||||
Total allowance for loan losses to nonperforming loans | 495.28 | % | 427.51 | % | 15.85 | % | ||||||
Nonperforming loans to total loans | 0.27 | % | 0.31 | % | -12.90 | % | ||||||
Total allowance for loan losses to total loans | 1.31 | % | 1.31 | % | -0.23 | % | ||||||
Equity to assets at period end | 8.96 | % | 9.61 | % | -6.78 | % |
(1) | Per share data has been restated to reflect the five per cent stock dividend paid in 2003 |
Middlefield Banc Corp. | ||||||||
Consolidated Balance Sheet | ||||||||
As of December 31, | ||||||||
2003 | 2002 | |||||||
ASSETS | ||||||||
Cash and due from banks | $ | 4,496 | $ | 2,347 | ||||
Federal funds sold | 930 | 350 | ||||||
Securities available for sale | 49,966 | 35,917 | ||||||
Securities held to maturity | 1,859 | 6,242 | ||||||
Total cash and securities | 57,251 | 44,856 | ||||||
Loans | 192,880 | 174,943 | ||||||
Less: reserve for loan losses | 2,521 | 2,300 | ||||||
Loans, net | 190,359 | 172,643 | ||||||
Premises and equipment | 6,808 | 6,481 | ||||||
Bank-owned life insurance | 5,202 | 0 | ||||||
Accrued interest receivable and other assets | 2,749 | 2,266 | ||||||
TOTAL ASSETS | $ | 262,369 | $ | 226,246 | ||||
As of December 31, | ||||||||
2003 | 2002 | |||||||
LIABILITIES | ||||||||
Deposits | $ | 219,840 | $ | 187,384 | ||||
Borrowed funds | 18,110 | 16,476 | ||||||
Other liabilities | 915 | 640 | ||||||
TOTAL LIABILITIES | 238,865 | 204,500 | ||||||
EQUITY | ||||||||
Common equity | 25,124 | 22,934 | ||||||
Net Unrealized gain (loss) on securities | 125 | 475 |
Treasury stock | (1,745 | ) | (1,663 | ) | ||||
TOTAL EQUITY | 23,504 | 21,746 | ||||||
TOTAL LIABILITIES & EQUITY | $ | 262,369 | $ | 226,246 | ||||