Middlefield Banc 8K Results of Operations and Financial Condition | MBCN 21 Apr 21

Exhibit 99

LOGO

15985 East High Street

P. O. Box 35

Middlefield, Ohio 44062

Phone: 440/632-1666 FAX: 440/632-1700

www.middlefieldbank.bank

PRESS RELEASE

Company Contact:

Investor and Media Contact:

Thomas G. Caldwell

President/Chief Executive Officer

Middlefield Banc Corp.

(440) 632-1666 Ext. 3200

tcaldwell@middlefieldbank.com

Andrew M. Berger

Managing Director

SM Berger & Company, Inc.

(216) 464-6400

andrew@smberger.com

Middlefield Banc Corp. Reports 2021 First Quarter Financial Results

MIDDLEFIELD, OHIO, April 20, 2021 ◆◆◆ ◆Middlefield Banc Corp. (NASDAQ: MBCN) today reported financial results for the 2021 first quarter ended March 31, 2021.

2021 First Quarter Financial Highlights Include (on a year-over-year basis unless noted):

•

Net income increased to a quarterly record of $4.2 million, or a record $0.65 per diluted share

•

Net interest margin improved by 10 basis points to 3.73%, compared to 3.63%

•

Total noninterest income was up 106.5% to $2.2 million

•

Pre-tax, pre-provision for loan losses⁽¹⁾ income increased 49.5% to $5.8 million

•

Return on average assets increased to 1.22% from 0.35%

•

Return on average equity increased to 11.64% from 3.01%

•

Return on average tangible common equity⁽¹⁾ increased to 13.16% from 3.43%

•

Efficiency ratio improved to 57.91%, compared to 63.47%

•

Net charge-offs declined 86.0% to $37,000

•

First quarter cash dividend increased 6.7% to $0.16 per share

“Our record first quarter financial results are encouraging and reflects the successful actions we took last year to navigate the impacts of the COVID-19 pandemic, our commitment to our communities, and the dedication of our team,” stated Thomas G. Caldwell, President and Chief Executive Officer. “While the COVID-19 pandemic continues, we are seeing improving trends across many aspects of our business and across many of our markets. We believe 2021 will be a strong year for Middlefield.”

“Last year we quickly implemented our Paycheck Protection Program (“PPP”) process and helped provide more than 1,410 small businesses over $145 million of support, while protecting over 12,000 jobs. We continue to help small business customers throughout our communities and during the first quarter, we processed an additional $60 million of PPP loans. During the first quarter, we also helped customers secure $49.7 million of PPP forgiveness, which provided a $750,000 benefit to our yield on earnings assets. Over 45% of PPP applicants booked were to small businesses without a prior banking relationship, which is a testament to the agility of our organization, our local presence, and our community-oriented values.”

“We remain focused on managing all aspects of the business that are under our control and I am proud of the success we have achieved managing asset quality, expenses, and noninterest income. As a result we experienced robust improvements in net interest margin, return on equity, and return on tangible common equity, which have all increased above pre-pandemic levels. In addition, during the first quarter, noninterest income doubled to a quarterly record of $2.2 million as a result of our long-term strategic focus to diversify revenues and strong residential mortgage demand. We continue to find new ways to support our small business customers, and we have established unique, safe, and secure offerings for the rapidly growing Ohio cannabis industry. We believe there are significant opportunities to expand our leading marijuana related business (“MRB”) banking portfolio and we will continue to seek additional growth opportunities as the economy re-opens.”

“I continue to be very thankful for the proven leadership team we have assembled and our loyal customers, employees, and shareholders. Thank you for your continued support,” concluded Mr. Caldwell.

Income Statement

Net interest income for the 2021 first quarter was $11.9 million, compared to $10.0 million for the 2020 first quarter. The net interest margin for the 2021 first quarter was 3.73%, compared to 3.63% for the same period of 2020. For the 2021 first quarter, noninterest income increased 106.5% to $2.2 million from $1.1 million for the same period of 2020. Noninterest expense for the 2021 first quarter increased 15.2% to $8.4 million, from the 2020 first quarter.

Balance Sheet

Total assets at March 31, 2021, increased 14.3% to $1.39 billion, compared to $1.21 billion at March 31, 2020. Net loans at March 31, 2021 increased 10.2% to $1.09 billion, compared to $988.8 million at March 31, 2020. Over the last 12 months, Middlefield has originated $205.4 million of loans under the PPP and helped customers receive $78.5 million of forgiveness payments under the terms of the program. The balance of PPP loans outstanding at March 31, 2021, was $126.9 million.

Total deposits at March 31, 2021, was $1.22 billion, compared to $1.00 billion at March 31, 2020. The 22.1% increase in deposits was primarily a result of increases in interest-bearing, money market and non-interest-bearing accounts, partially offset by decreases time-based accounts. The investment portfolio, classified as available for sale, was $123.2 million at March 31, 2021, compared with $103.0 million at March 31, 2020.

Donald L. Stacy, Chief Financial Officer stated, “We entered 2021 with a strengthened balance sheet as a result of last year’s strategies to increase our allowance for loan losses, as well as favorable asset performance and robust liquidity and capital levels. Our allowance for loan losses to total loans now stands at 1.28%, compared to 1.22% at December 31, 2020 and 0.93% at March 31, 2020. The increase in nonperforming loans is primarily due to payment deferrals we extended to certain business customers to help them navigate the continued challenges of the COVID-19 crisis. At March 31, 2021 we had $25.3 million in deferrals, compared to $214.8 million at June 30, 2020, a decline of over 88%.”

“We remain focused on managing risk and pricing on loans, while proactively controlling our cost of funds and operating expenses. In addition, we continue to focus on creating value for our shareholders. During the quarter we increased our quarterly dividend payment by 6.7% and repurchased 49,468 shares of our common stock. With an equity to assets ratio of 10.4%, $100.5 million of cash and cash equivalents, and $123.2 million of investment securities available for sale we have a strong liquidity position to support our customers and our growth initiatives,” concluded Mr. Stacy.

Stockholders’ Equity and Dividends

At March 31, 2021, stockholders’ equity increased 8.7% to $144.3 million compared to $132.7 million at March 31, 2020. On a per share basis, shareholders’ equity at March 31, 2021, was $22.74 compared to $20.83, an increase of 9.2%, over the same period last year.

At March 31, 2021, tangible stockholders’ equity⁽¹⁾ increased 10.3% to $127.6 million for the 2021 first quarter, compared to $115.6 million at March 31, 2020. On a per-share basis, tangible stockholders’ equity⁽¹⁾ was $20.11 at March 31, 2021, compared to $18.16 at March 31, 2020, an increase of 10.7%.

During the 2021 first quarter, the Company paid cash dividends of $0.16 per share, compared to $0.15 per share for the first quarter last year.

At March 31, 2021, the Company had an equity to assets leverage ratio of 10.4%, compared to 10.9% at March 31, 2020.

Asset Quality

The provision for loan losses for the 2021 first quarter was $700,000, compared to $2.7 million for the same period a year ago. The year-over-year decline in the provision for loan losses was partially due to strong asset quality and last year’s prudent build in the Company’s allowance for loan losses associated with the potential economic impacts caused by the COVID-19 pandemic.

Net charge-offs were $37,000, or 0.01% of average loans, annualized, during the 2021 first quarter, compared to net charge-offs of $264,000, or 0.11% of average loans, annualized, at March 31, 2020.

Nonperforming assets at March 31, 2021, were $16.3 million, compared to $8.9 million at March 31, 2020. The allowance for loan losses at March 31, 2021, stood at $14.1 million, or 1.28% of total loans, compared to $9.2 million, or 0.93% of total loans at March 31, 2020.

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 $1.39 billion at March 31, 2021. 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, 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 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) the effect of the COVID-19 pandemic, including on our credit quality and business operations, as well as its impact on general economic and financial market conditions; (8) changes in the securities markets; or (9) 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)


Balance Sheets (period end)	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
ASSETS
Cash and due from banks	$	93,037		$	92,874		$	46,097		$	55,766		$	53,533
Federal funds sold		7,436			19,543			6,884			2,520			1,800

Cash and cash equivalents		100,473			112,417			52,981			58,286			55,333
Equity securities, at fair value		690			609			553			581			550
Investment securities available for sale, at fair value		123,218			114,360			112,968			112,529			102,959
Loans held for sale		1,260			878			10,457			4,151			513
Loans:
Commercial real estate:
Owner occupied		104,379			103,121			107,342			110,134			113,272
Non-owner occupied		304,623			309,424			310,512			300,577			292,775
Multifamily		39,015			39,562			39,622			37,604			52,276
Residential real estate		228,052			233,995			222,237			227,427			233,900
Commercial and industrial		242,651			232,044			258,313			240,096			106,797
Home equity lines of credit		111,474			112,543			115,223			117,196			114,933
Construction and other		64,960			63,573			60,613			66,015			71,186
Consumer installment		9,046			9,823			10,534			11,210			12,861

Total loans		1,104,200			1,104,085			1,124,396			1,110,259			998,000
Less allowance for loan and lease losses		14,122			13,459			11,359			10,210			9,244

Net loans		1,090,078			1,090,626			1,113,037			1,100,049			988,756
Premises and equipment, net		18,002			18,333			18,633			18,962			17,653
Goodwill		15,071			15,071			15,071			15,071			15,071
Core deposit intangibles		1,644			1,724			1,807			1,890			1,973
Bank-owned life insurance		16,740			16,938			16,832			16,723			16,618
Other real estate owned		7,372			7,387			7,391			687			456
Accrued interest receivable and other assets		13,156			13,636			15,079			14,391			14,057

TOTAL ASSETS	$	1,387,704		$	1,391,979		$	1,364,809		$	1,343,320		$	1,213,939


	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
LIABILITIES
Deposits:
Noninterest-bearing demand	$	317,224		$	291,347		$	268,838		$	270,738		$	206,372
Interest-bearing demand		215,684			195,722			179,080			136,722			125,184
Money market		187,204			198,493			184,936			168,842			156,556
Savings		259,973			243,888			231,696			218,545			175,468
Time		245,342			295,750			329,413			363,420			340,130

Total deposits		1,225,427			1,225,200			1,193,963			1,158,267			1,003,710
Short-term borrowings		—			—			—			20,417			60,000
Other borrowings		13,095			17,038			17,100			17,162			12,662
Accrued interest payable and other liabilities		4,901			5,931			11,690			6,779			4,880

TOTAL LIABILITIES		1,243,423			1,248,169			1,222,753			1,202,625			1,081,252

STOCKHOLDERS’ EQUITY
Common stock, no par value; 10,000,000 shares authorized, 7,323,487
shares issued, 6,344,657 shares outstanding as of March 31, 2021		87,073			86,886			86,871			86,722			86,722
Retained earnings		72,729			69,578			68,046			67,150			65,140
Accumulated other comprehensive income (loss)		2,917			4,284			4,077			3,761			(2,237	)
Treasury stock, at cost; 978,830 shares as of March 31, 2021		(18,438	)		(16,938	)		(16,938	)		(16,938	)		(16,938	)

TOTAL STOCKHOLDERS’ EQUITY		144,281			143,810			142,056			140,695			132,687

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,387,704		$	1,391,979		$	1,364,809		$	1,343,320		$	1,213,939

MIDDLEFIELD BANC CORP.

Consolidated Selected Financial Highlights

(Dollar amounts in thousands, unaudited)


	For the Three Months Ended
Statements of Income	March 31, 2021		December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$	12,167	$	12,041		$	12,603		$	12,281		$	12,078
Interest-earning deposits in other institutions		18		9			8			7			94
Federal funds sold		—		1			—			—			21
Investment securities:
Taxable interest		370		297			249			206			157
Tax-exempt interest		558		591			618			634			629
Dividends on stock		29		28			29			27			30

Total interest and dividend income		13,142		12,967			13,507			13,155			13,009

INTEREST EXPENSE
Deposits		1,205		1,655			2,106			2,336			2,865
Short-term borrowings		—		(2	)		14			32			35
Other borrowings		39		43			28			62			76

Total interest expense		1,244		1,696			2,148			2,430			2,976

NET INTEREST INCOME		11,898		11,271			11,359			10,725			10,033
Provision for loan losses		700		2,100			4,000			1,000			2,740

NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES		11,198		9,171			7,359			9,725			7,293

NONINTEREST INCOME
Service charges on deposit accounts		787		729			691			566			553
Gain (loss) on equity securities		81		56			(28	)		31			(160	)
Earnings on bank-owned life insurance		226		106			109			105			107
Gains on sale of loans		592		332			660			381			114
Other income		532		387			379			412			460

Total noninterest income		2,218		1,610			1,811			1,495			1,074

NONINTEREST EXPENSE
Salaries and employee benefits		4,254		4,458			3,657			4,136			3,584
Occupancy expense		600		628			497			483			550
Equipment expense		357		365			363			307			273
Data processing costs		786		617			683			684			666
Ohio state franchise tax		286		251			282			281			268
Federal deposit insurance expense		144		103			123			74			123
Professional fees		419		352			289			369			349
Net loss (gain) on other real estate owned		46		(172	)		(184	)		(33	)		1
Advertising expense		221		55			217			217			209
Software amortization expense		80		66			70			74			141
Core deposit intangible amortization		80		83			83			83			83
Other expense		1,080		1,019			942			1,014			1,005

Total noninterest expense		8,353		7,825			7,022			7,689			7,252

Income before income taxes		5,063		2,956			2,148			3,531			1,115
Income taxes		896		467			295			565			74

NET INCOME	$	4,167	$	2,489		$	1,853		$	2,966		$	1,041

PTPP ⁽¹⁾	$	5,763	$	5,056		$	6,148		$	4,531		$	3,855

(1)	The pre-tax pre-provision (PTPP) is the income before income taxes before provision for loan losses considerations, for reconciliation of 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, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
Per common share data
Net income per common share—basic	$	0.65		$	0.39		$	0.29		$	0.47		$	0.16
Net income per common share—diluted	$	0.65		$	0.39		$	0.29		$	0.46		$	0.16
Dividends declared per share	$	0.16		$	0.15		$	0.15		$	0.15		$	0.15
Book value per share (period end)	$	22.74		$	22.54		$	22.27		$	22.09		$	20.83
Tangible book value per share (period end) ^{(2) (3)}	$	20.11		$	19.91		$	19.63		$	19.43		$	18.16
Dividends declared	$	1,016		$	957		$	957		$	956		$	964
Dividend yield		3.10	%		2.65	%		3.09	%		2.91	%		3.82	%
Dividend payout ratio		24.38	%		38.45	%		51.65	%		32.23	%		92.60	%
Average shares outstanding—basic		6,364,132			6,378,706			6,376,291			6,369,467			6,417,109
Average shares outstanding—diluted		6,378,493			6,397,681			6,385,765			6,388,118			6,429,443
Period ending shares outstanding		6,344,657			6,379,323			6,378,110			6,369,467			6,369,467
Selected ratios
Return on average assets		1.22	%		0.72	%		0.54	%		0.90	%		0.35	%
Return on average equity		11.64	%		6.76	%		5.11	%		8.57	%		3.01	%
Return on average tangible common equity ^{(2) (4)}		13.16	%		7.64	%		5.79	%		9.76	%		3.43	%
Efficiency ⁽¹⁾		57.91	%		59.29	%		51.96	%		61.29	%		63.47	%
Equity to assets at period end		10.40	%		10.33	%		10.41	%		10.47	%		10.93	%
Noninterest expense to average assets		0.60	%		0.57	%		0.52	%		0.58	%		0.61	%

(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

MIDDLEFIELD BANC CORP.

Consolidated Selected Financial Highlights

(Unaudited)


	For the Three Months Ended
Yields	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
Interest-earning assets:
Loans receivable ⁽²⁾		4.48	%		4.28	%		4.48	%		4.53	%		4.95	%
Investment securities ⁽²⁾		3.75	%		3.65	%		3.66	%		3.76	%		3.62	%
Interest-earning deposits with other banks		0.20	%		0.21	%		0.27	%		0.23	%		1.40	%
Total interest-earning assets		4.11	%		4.00	%		4.23	%		4.27	%		4.69	%
Deposits:
Interest-bearing demand deposits		0.16	%		0.21	%		0.32	%		0.35	%		0.42	%
Money market deposits		0.47	%		0.53	%		0.70	%		0.93	%		1.41	%
Savings deposits		0.07	%		0.11	%		0.20	%		0.21	%		0.50	%
Certificates of deposit		1.28	%		1.56	%		1.77	%		2.00	%		2.12	%
Total interest-bearing deposits		0.53	%		0.70	%		0.93	%		1.11	%		1.39	%
Non-Deposit Funding:
Borrowings		1.10	%		0.95	%		0.45	%		0.53	%		1.62	%
Total interest-bearing liabilities		0.54	%		0.71	%		0.91	%		1.07	%		1.40	%
Cost of deposits		0.40	%		0.54	%		0.72	%		0.85	%		1.13	%
Cost of funds		0.41	%		0.55	%		0.71	%		0.83	%		1.14	%
Net interest margin ⁽¹⁾		3.73	%		3.49	%		3.57	%		3.49	%		3.63	%

(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
Asset quality data	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
(Dollar amounts in thousands, unaudited)
Nonperforming loans ⁽¹⁾	$	8,958		$	7,858		$	6,690		$	9,803		$	8,405
Other real estate owned		7,372			7,387			7,391			687			456

Nonperforming assets	$	16,330		$	15,245		$	14,081		$	10,490		$	8,861

Allowance for loan losses	$	14,122		$	13,459		$	11,359		$	10,210		$	9,244
Allowance for loan losses/total loans		1.28	%		1.22	%		1.01	%		0.92	%		0.93	%
Net charge-offs:
Quarter-to-date	$	37		$	—		$	2,851		$	34		$	264
Net charge-offs to average loans, annualized:
Quarter-to-date		0.01	%		0.00	%		1.01	%		0.01	%		0.11	%
Nonperforming loans/total loans		0.81	%		0.71	%		0.59	%		0.88	%		0.84	%
Allowance for loan losses/nonperforming loans		157.65	%		171.28	%		169.79	%		104.15	%		109.98	%
Nonperforming assets/total assets		1.18	%		1.10	%		1.03	%		0.78	%		0.73	%

(1)	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
(Dollar amounts in thousands, unaudited)	March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020		March 31, 2020
Stockholders’ Equity	$	144,281	$	143,810	$	142,056	$	140,695	$	132,687
Less Goodwill and other intangibles		16,715		16,795		16,878		16,961		17,044

Tangible Common Equity	$	127,566	$	127,015	$	125,178	$	123,734	$	115,643

Shares outstanding		6,344,657		6,379,323		6,378,110		6,369,467		6,369,467

Tangible book value per share	$	20.11	$	19.91	$	19.63	$	19.43	$	18.16

Reconciliation of Average Equity to Return on Average Tangible Common Equity


	For the Three Months Ended
	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
Average Stockholders’ Equity	$	145,208		$	146,374		$	144,167		$	139,212		$	139,208
Less Average Goodwill and other intangibles		16,754			16,836			16,919			17,002			17,085

Average Tangible Common Equity	$	128,454		$	129,538		$	127,248		$	122,210		$	122,123

Net income	$	4,167		$	2,489		$	1,853		$	2,966		$	1,041

Return on average tangible common equity (annualized)		13.16	%		7.64	%		5.79	%		9.76	%		3.43	%

Reconciliation of Pre-Tax Pre-Provision Income (PTPP)


	For the Three Months Ended
	March 31, 2021		December 31, 2020		September 30, 2020		June 30, 2020		March 31, 2020
Net income	$	4,167	$	2,489	$	1,853	$	2,966	$	1,041
Add Income Taxes		896		467		295		565		74
Add Provision for loan losses		700		2,100		4,000		1,000		2,740

PTPP	$	5,763	$	5,056	$	6,148	$	4,531	$	3,855

MIDDLEFIELD BANC CORP.

Average Balance Sheets

(Dollar amounts in thousands, unaudited)


	For the Three Months Ended
	March 31, 2021							March 31, 2020
	Average Balance		Interest		Average Yield/Cost			Average Balance		Interest		Average Yield/Cost
Interest-earning assets:
Loans receivable ⁽³⁾	$	1,103,373	$	12,167		4.48	%	$	984,034	$	12,078		4.95	%
Investment securities ⁽³⁾		116,510		928		3.75	%		105,894		786		3.62	%
Interest-earning deposits with other banks ⁽⁴⁾		93,709		47		0.20	%		41,717		145		1.40	%

Total interest-earning assets		1,313,592		13,142		4.11	%		1,131,645		13,009		4.69	%

Noninterest-earning assets		71,007							65,003

Total assets	$	1,384,599						$	1,196,648

Interest-bearing liabilities:
Interest-bearing demand deposits	$	203,047	$	78		0.16	%	$	113,691	$	119		0.42	%
Money market deposits		195,275		228		0.47	%		158,008		552		1.41	%
Savings deposits		256,151		47		0.07	%		183,137		226		0.50	%
Certificates of deposit		269,493		852		1.28	%		373,866		1,968		2.12	%
Short-term borrowings		111		—		0.00	%		14,808		35		0.95	%
Other borrowings		14,258		39		1.11	%		12,703		76		2.41	%

Total interest-bearing liabilities		938,335		1,244		0.54	%		856,213		2,976		1.40	%

Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		295,199							195,411
Other liabilities		5,857							5,816
Stockholders’ equity		145,208							139,208

Total liabilities and stockholders’ equity	$	1,384,599						$	1,196,648

Net interest income			$	11,898						$	10,033

Interest rate spread ⁽¹⁾						3.57	%						3.29	%
Net interest margin ⁽²⁾						3.73	%						3.63	%
Ratio of average interest-earning assets to
average interest-bearing liabilities						139.99	%						132.17	%

(1)	Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.

(2)	Net interest margin represents net interest income as a percentage of average interest-earning assets.

(3)	Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $169 and $189 for the three months ended March 31, 2021 and 2020, respectively

(4)	Includes dividends received on restricted stock.


	For the Three Months Ended
	March 31, 2021							December 31, 2020
	Average Balance		Interest		Average Yield/Cost			Average Balance		Interest		Average Yield/Cost
Interest-earning assets:
Loans receivable ⁽³⁾	$	1,103,373	$	12,167		4.48	%	$	1,121,259	$	12,041		4.28	%
Investment securities ⁽³⁾		116,510		928		3.75	%		113,801		888		3.65	%
Interest-earning deposits with other banks ⁽⁴⁾		93,709		47		0.20	%		70,803		38		0.21	%

Total interest-earning assets		1,313,592		13,142		4.11	%		1,305,863		12,967		4.00	%

Noninterest-earning assets		71,007							78,064

Total assets	$	1,384,599						$	1,383,927

Interest-bearing liabilities:
Interest-bearing demand deposits	$	203,047	$	78		0.16	%	$	186,933	$	97		0.21	%
Money market deposits		195,275		228		0.47	%		191,771		255		0.53	%
Savings deposits		256,151		47		0.07	%		238,991		66		0.11	%
Certificates of deposit		269,493		852		1.28	%		316,293		1,237		1.56	%
Short-term borrowings		111		—		0.00	%		26		—		0.00	%
Other borrowings		14,258		39		1.11	%		17,068		41		0.96	%

Total interest-bearing liabilities		938,335		1,244		0.54	%		951,082		1,696		0.71	%

Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		295,199							281,608
Other liabilities		5,857							4,863
Stockholders’ equity		145,208							146,374

Total liabilities and stockholders’ equity	$	1,384,599						$	1,383,927

Net interest income			$	11,898						$	11,271

Interest rate spread ⁽¹⁾						3.57	%						3.29	%
Net interest margin ⁽²⁾						3.73	%						3.49	%
Ratio of average interest-earning assets to
average interest-bearing liabilities						139.99	%						137.30	%

(1)	Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.

(2)	Net interest margin represents net interest income as a percentage of average interest-earning assets.

(3)	Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $169 and $178 for the three months ended March 31, 2021, and December 31, 2020, respectively.

(4)	Includes dividends received on restricted stock.

Middlefield Banc (MBCN) 8-KResults of Operations and Financial Condition