Middlefield Banc 8K Results of Operations and Financial Condition | MBCN 21 Apr 22

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:

James Heslop

President/Chief Executive Officer

Middlefield Banc Corp.

(440) 632-1666 Ext. 3219

JHeslop@middlefieldbank.com

Andrew M. Berger

Managing Director

SM Berger & Company, Inc.

(216) 464-6400

andrew@smberger.com

Middlefield Banc Corp. Reports 2022 First Quarter Financial Results

MIDDLEFIELD, OHIO, April 21, 2022 ◆◆◆◆ Middlefield Banc Corp. (NASDAQ: MBCN) today reported financial results for the 2022 first quarter ended March 31, 2022.

2022 First Quarter Financial Highlights Include (on a year-over-year basis unless noted):

•

Returned $1.8 million of capital to shareholders through dividends and the repurchase of 32,150 shares

•

Net income was $3.8 million, or $0.65 per diluted share, compared to $4.2 million, or $0.65 per diluted share

•

First-quarter pre-tax income benefited from $640,000 of accelerated net fees associated with the Paycheck Protection Program (“PPP”), compared to $800,000 in the 2021 first quarter

•

Net interest margin improved by 7 basis points to 3.80%, compared to 3.73%

•

Total loans were $977.7 million, compared to $981.7 million at December 31, 2021

•

Total loans increased by $12.5 million or 5.2% annualized from December 31, 2021, without the impact of PPP loan forgiveness

•

Return on average assets was 1.17%, compared to 1.22%

•

Return on average equity was 10.75%, compared to 11.64%

•

Return on average tangible common equity⁽¹⁾ was 12.13%, compared to 13.16%

•

Strong asset quality with nonperforming loans to total loans of 0.48%, compared to 0.81%

•

Allowance for loan losses was 1.48% of total loans, compared to 1.28%

“Over the past two years, we have focused on supporting our communities while enhancing our asset quality, increasing our allowance for bad debts, managing expenses, and returning excess capital to shareholders through our growing dividend and active share repurchase programs,” stated James R. Heslop, II, President and Chief Executive Officer. “I am proud of our progress and the strong platform we have created. As a result, I believe we are well-positioned to grow our Bank across our Northeast and Central Ohio markets and I am encouraged by the 1.3% increase in total loans from December 31, 2021, when adjusted for the impact of PPP loan forgiveness.”

Mr. Heslop continued, “With strong capital levels, $108.3 million in cash and cash equivalents, and $175.2 million in investments, we continue to allocate excess capital to our dividend and share repurchase programs. Over the last 12 months, we have repurchased 495,131 shares of our common stock at a total cost of $12.0 million. This includes 32,150 shares repurchased during the 2022 first quarter at an average price of $25.47 per share, or 123.40% of our tangible book value of $20.64 at March 31, 2022. We will continue to focus on returning capital to shareholders throughout 2022.”

“While uncertainty has increased across the global economic environment, economic activity within our local Northeast and Central Ohio markets remains compelling. We believe the value we provide our communities supports our growth objectives and we expect 2022 to be another good year for The Middlefield Banking Company,” concluded Mr. Heslop.

Income Statement

Net interest income for the 2022 first quarter was $11.5 million, compared to $11.9 million for the 2021 first quarter. The net interest margin for the 2022 first quarter was 3.80%, compared to 3.73% for the same period of 2021. For the 2022 first quarter, noninterest income decreased 36.7% to $1.4 million from $2.2 million for the same period of 2021. Noninterest expense was $8.3 million for both the 2022 and 2021 first quarters.

Balance Sheet

Total assets at March 31, 2022, decreased 4.7% to $1.32 billion, compared to $1.39 billion at March 31, 2021. Net loans at March 31, 2022, decreased 11.6% to $963.2 million, compared to $1.09 billion at March 31, 2021. Since 2020, Middlefield has helped customers receive $194.9 million of forgiveness payments under the terms of the Paycheck Protection Program, including processing $16.4 million of forgiveness payments during the first quarter of 2022. The balance of PPP loans outstanding at March 31, 2022, was $17.7 million.

Total deposits at March 31, 2022, were $1.17 billion, compared to $1.23 billion at March 31, 2021. The 4.8% decrease in deposits was primarily due to a decline in time-based and interest-bearing accounts, partially offset by increased noninterest-bearing and savings accounts. The investment portfolio was $175.2 million at March 31, 2022, compared with $123.2 million at March 31, 2021.

Donald L. Stacy, Chief Financial Officer, stated, “We continue to operate with one of the strongest balance sheets in our 120-year history, which provides us with significant flexibility to support our share repurchase programs and growth strategies. In addition, our asset quality is excellent, with nonperforming loans down 47.2% over the prior year, while our allowance for loan losses to nonperforming loans has increased from 157.65% at March 31, 2021, to 306.51% at March 31, 2022.”

Mr. Stacy continued, “I am pleased by the success we have had managing both our noninterest expense and cost of funds. During the first quarter, noninterest expense was flat compared to the same period last year. In addition, our cost of funds declined 14 basis points, helping produce a 7-basis point year-over-year improvement in our net interest margin. As a result, we are well-positioned to benefit from a rising interest rate environment, especially as the prime rate increases above 1.00%.”

Stockholders’ Equity and Dividends

At March 31, 2022, stockholders’ equity was $137.6 million compared to $144.7 million at March 31, 2021. The 4.9% year-over-year decline in stockholders’ equity was primarily due to an increase in the unrealized loss on the available-for-sale investment portfolio during the three-month period and the Company’s stock repurchase program. On a per-share basis, shareholders’ equity at March 31, 2022, was $23.43 compared to $22.80, an increase of 2.8%, over the same period last year.

At March 31, 2022, tangible stockholders’ equity⁽¹⁾ was $121.2 million for the 2022 first quarter, compared to $128.0 million at March 31, 2021. On a per-share basis, tangible stockholders’ equity⁽¹⁾ was $20.64 at March 31, 2022, compared to $20.17 at March 31, 2021, an increase of 2.3%.

For the 2022 first quarter, cash dividends declared per share increased 6.3% to $0.17 per share totaling $1.0 million, compared to $0.16 per share totaling $1.0 million, for the first quarter last year.

At March 31, 2022, the Company had an equity-to-assets leverage ratio of 10.40%, compared to 10.42% at March 31, 2021.

Asset Quality

There was no provision for loan losses for the 2022 first quarter versus a $700,000 provision for loan losses for the same period last year. The year-over-year decline in the provision for loan losses was partially due to strong asset quality and previous 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 recoveries were $150,000, or 0.06% of average loans, annualized, during the 2022 first quarter, compared to net charge-offs of $37,000, or 0.01% of average loans, annualized, at March 31, 2021.

Nonperforming loans at March 31, 2022, were $4.7 million, compared to $9.0 million at March 31, 2021. Nonperforming assets at March 31, 2022, were $11.7 million, compared to $16.3 million at March 31, 2021. The allowance for loan losses at March 31, 2022, stood at $14.5 million, or 1.48% of total loans, compared to $14.1 million, or 1.28% of total loans at March 31, 2021.

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 $1.32 billion at March 31, 2022. 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, 2022			December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021
ASSETS
Cash and due from banks	$	78,804		$	97,172		$	113,177		$	82,435		$	93,037
Federal funds sold		29,474			22,322			19,174			10,034			7,436

Cash and cash equivalents		108,278			119,494			132,351			92,469			100,473
Equity securities, at fair value		851			818			833			730			690
Investment securities available for sale, at fair value		175,216			170,199			163,057			150,850			123,218
Loans held for sale		9			1,051			676			790			1,260
Loans:
Commercial real estate:
Owner occupied		113,590			111,470			110,883			109,777			104,379
Non-owner occupied		293,745			283,618			310,222			304,324			304,623
Multifamily		29,385			31,189			30,762			34,926			39,015
Residential real estate		244,747			240,089			232,020			228,102			228,052
Commercial and industrial		131,683			148,812			163,052			200,558			242,651
Home equity lines of credit		106,300			104,355			105,450			107,685			111,474
Construction and other		50,152			54,148			49,378			62,229			64,960
Consumer installment		8,118			8,010			8,515			8,694			9,046

Total loans		977,720			981,691			1,010,282			1,056,295			1,104,200
Less allowance for loan and lease losses		14,492			14,342			14,234			14,200			14,122

Net loans		963,228			967,349			996,048			1,042,095			1,090,078
Premises and equipment, net		17,142			17,272			17,507			17,680			18,002
Goodwill		15,071			15,071			15,071			15,071			15,071
Core deposit intangibles		1,326			1,403			1,484			1,564			1,644
Bank-owned life insurance		17,166			17,060			16,954			16,846			16,740
Other real estate owned		6,992			6,992			7,090			7,090			7,372
Accrued interest receivable and other assets		18,019			14,297			14,794			15,033			13,545

TOTAL ASSETS	$	1,323,298		$	1,331,006		$	1,365,865		$	1,360,218		$	1,388,093


	March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021
LIABILITIES
Deposits:
Noninterest-bearing demand	$	361,251		$	334,171		$	316,770		$	326,665		$	317,224
Interest-bearing demand		162,010			196,308			237,576			207,725			215,684
Money market		187,807			177,281			178,423			183,453			187,204
Savings		264,784			260,125			256,114			252,171			259,973
Time		191,320			198,725			211,674			225,271			245,342

Total deposits		1,167,172			1,166,610			1,200,557			1,195,285			1,225,427

Other borrowings		12,975			12,901			12,966			13,031			13,095
Accrued interest payable and other liabilities		5,507			6,160			6,287			5,858			4,901

TOTAL LIABILITIES		1,185,654			1,185,671			1,219,810			1,214,174			1,243,423

STOCKHOLDERS’ EQUITY
Common stock, no par value; 10,000,000 shares authorized, 7,347,526 shares issued, 5,873,565 shares outstanding as of March 31, 2022		87,562			87,131			87,131			87,131			87,073
Retained earnings		86,804			83,971			80,376			76,150			72,729
Accumulated other comprehensive (loss) income		(6,674	)		3,462			3,610			3,893			2,917
Treasury stock, at cost; 1,473,961 shares as of March 31, 2022		(30,048	)		(29,229	)		(25,062	)		(21,130	)		(18,049	)

TOTAL STOCKHOLDERS’ EQUITY		137,644			145,335			146,055			146,044			144,670

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,323,298		$	1,331,006		$	1,365,865		$	1,360,218		$	1,388,093

MIDDLEFIELD BANC CORP.

Consolidated Selected Financial Highlights

(Dollar amounts in thousands, unaudited)


	For the Three Months Ended
Statements of Income	March 31, 2022		December 31, 2021			September 30, 2021		June 30, 2021		March 31, 2021
INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$	10,985	$	11,586		$	12,258	$	11,885	$	12,167
Interest-earning deposits in other institutions		24		30			30		12		18
Federal funds sold		3		1			1		1		—
Investment securities:
Taxable interest		443		438			461		410		370
Tax-exempt interest		784		732			673		602		558
Dividends on stock		24		23			24		26		29

Total interest and dividend income		12,263		12,810			13,447		12,936		13,142

INTEREST EXPENSE
Deposits		726		783			915		1,010		1,205
Other borrowings		69		67			69		71		75

Total interest expense		795		850			984		1,081		1,280

NET INTEREST INCOME		11,468		11,960			12,463		11,855		11,862
Provision for loan losses		—		(200	)		—		200		700

NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES		11,468		12,160			12,463		11,655		11,162

NONINTEREST INCOME
Service charges on deposit accounts		914		906			876		856		787
Gain (loss) on equity securities		33		(14	)		102		40		81
Earnings on bank-owned life insurance		106		106			108		106		226
Gain on sale of loans		3		118			309		221		592
Revenue from investment services		141		198			192		210		127
Other income		206		221			234		199		405

Total noninterest income		1,403		1,535			1,821		1,632		2,218

NONINTEREST EXPENSE
Salaries and employee benefits		4,386		4,088			4,488		4,321		4,254
Occupancy expense		505		542			425		517		564
Equipment expense		315		358			333		313		357
Data processing costs		682		660			736		698		786
Ohio state franchise tax		293		285			287		286		286
Federal deposit insurance expense		50		50			150		150		144
Professional fees		455		435			136		323		419
Net gain (loss) on other real estate owned		8		(66	)		9		22		46
Advertising expense		228		221			222		221		221
Software amortization expense		48		119			88		74		80
Core deposit intangible amortization		77		80			81		80		80
Other expense		1,219		1,059			951		889		1,080

Total noninterest expense		8,266		7,831			7,906		7,894		8,317

Income before income taxes		4,605		5,864			6,378		5,393		5,063
Income taxes		772		1,027			1,174		968		896

NET INCOME	$	3,833	$	4,837		$	5,204	$	4,425	$	4,167

PTPP ⁽¹⁾	$	4,605	$	5,664		$	6,378	$	5,593	$	5,763

(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, 2022			December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021
Per common share data
Net income per common share - basic	$	0.65		$	0.81		$	0.85		$	0.70		$	0.65
Net income per common share - diluted	$	0.65		$	0.81		$	0.85		$	0.70		$	0.65
Dividends declared per share	$	0.17		$	0.21		$	0.16		$	0.16		$	0.16
Book value per share (period end)	$	23.43		$	24.68		$	24.13		$	23.50		$	22.80
Tangible book value per share (period end) ^{(2) (3)}	$	20.64		$	21.88		$	21.39		$	20.82		$	20.17
Dividends declared	$	1,000		$	1,242		$	978		$	1,004		$	1,016
Dividend yield		2.78	%		3.37	%		2.66	%		2.72	%		3.10	%
Dividend payout ratio		26.09	%		25.68	%		18.79	%		22.69	%		24.38	%
Average shares outstanding - basic		5,879,025			5,951,838			6,136,648			6,297,071			6,364,132
Average shares outstanding - diluted		5,889,836			5,975,333			6,157,181			6,312,230			6,378,493
Period ending shares outstanding		5,873,565			5,888,737			6,054,083			6,215,511			6,344,657

Selected ratios
Return on average assets		1.17	%		1.41	%		1.51	%		1.30	%		1.22	%
Return on average equity		10.75	%		13.17	%		13.95	%		12.10	%		11.64	%
Return on average tangible common equity ^{(2) (4)}		12.13	%		14.85	%		15.71	%		13.65	%		13.16	%
Efficiency ⁽¹⁾		62.54	%		56.56	%		54.04	%		57.18	%		57.81	%
Equity to assets at period end		10.40	%		10.92	%		10.69	%		10.74	%		10.42	%
Noninterest expense to average assets		0.62	%		0.58	%		0.58	%		0.58	%		0.60	%

(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, 2022			December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021
Interest-earning assets:
Loans receivable ⁽²⁾		4.53	%		4.61	%		4.74	%		4.43	%		4.48	%
Investment securities ⁽²⁾		3.41	%		3.30	%		3.37	%		3.47	%		3.75	%
Interest-earning deposits with other banks		0.23	%		0.20	%		0.21	%		0.18	%		0.20	%
Total interest-earning assets		4.06	%		4.07	%		4.20	%		4.05	%		4.11	%
Deposits:
Interest-bearing demand deposits		0.14	%		0.12	%		0.12	%		0.12	%		0.16	%
Money market deposits		0.47	%		0.47	%		0.46	%		0.46	%		0.47	%
Savings deposits		0.06	%		0.06	%		0.06	%		0.06	%		0.07	%
Certificates of deposit		0.87	%		0.90	%		1.08	%		1.19	%		1.28	%
Total interest-bearing deposits		0.37	%		0.36	%		0.41	%		0.46	%		0.53	%
Non-Deposit Funding:
Borrowings		2.16	%		2.09	%		2.11	%		2.18	%		2.12	%
Total interest-bearing liabilities		0.39	%		0.37	%		0.42	%		0.47	%		0.54	%
Cost of deposits		0.25	%		0.26	%		0.30	%		0.34	%		0.40	%
Cost of funds		0.27	%		0.27	%		0.31	%		0.35	%		0.41	%
Net interest margin ⁽¹⁾		3.80	%		3.82	%		3.91	%		3.72	%		3.73	%

(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, 2022			December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021
(Dollar amounts in thousands, unaudited)
Nonperforming loans ⁽¹⁾	$	4,728		$	4,859		$	6,806		$	7,760		$	8,958
Other real estate owned		6,992			6,992			7,090			7,090			7,372

Nonperforming assets	$	11,720		$	11,851		$	13,896		$	14,850		$	16,330

Allowance for loan losses	$	14,492		$	14,342		$	14,234		$	14,200		$	14,122
Allowance for loan losses/total loans		1.48	%		1.46	%		1.41	%		1.34	%		1.28	%
Net (recoveries) charge-offs:
Quarter-to-date	$		(150)	$		(308)	$	(34	)	$	122		$	37
Net (recoveries) charge-offs to average loans, annualized:
Quarter-to-date		(0.06	)%		(0.12	)%		(0.01	)%		0.05	%		0.01
Nonperforming loans/total loans		0.48	%		0.49	%		0.67	%		0.73	%		0.81	%
Allowance for loan losses/nonperforming loans		306.51	%		295.16	%		209.14	%		182.99	%		157.65	%
Nonperforming assets/total assets		0.89	%		0.89	%		1.02	%		1.09	%		1.18	%

(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, 2022		December 31, 2021		September 30, 2021		June 30, 2021		March 31, 2021
Stockholders’ Equity	$	137,644	$	145,335	$	146,055	$	146,044	$	144,670
Less Goodwill and other intangibles		16,397		16,474		16,555		16,635		16,715

Tangible Common Equity	$	121,247	$	128,861	$	129,500	$	129,409	$	127,955

Shares outstanding		5,873,565		5,888,737		6,054,083		6,215,511		6,344,657

Tangible book value per share	$	20.64	$	21.88	$	21.39	$	20.82	$	20.17


Reconciliation of Average Equity to Return on Average Tangible Common Equity	For the Three Months Ended
	March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021
Average Stockholders’ Equity	$	144,630		$	145,716		$	148,048		$	146,719		$	145,208
Less Average Goodwill and other intangibles		16,435			16,513			16,594			16,674			16,754

Average Tangible Common Equity	$	128,195		$	129,203		$	131,454		$	130,045		$	128,454

Net income	$	3,833		$	4,837		$	5,204		$	4,425		$	4,167

Return on average tangible common equity (annualized)		12.13	%		14.85	%		15.71	%		13.65	%		13.16	%


Reconciliation of Pre-Tax Pre-Provision Income (PTPP)	For the Three Months Ended
	March 31, 2022			December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021
Net income	$	3,833		$	4,837		$	5,204		$	4,425		$	4,167
Add Income Taxes		772			1,027			1,174			968			896
Add Provision for loan losses		—			(200	)		—			200			700

PTPP	$	4,605		$	5,664		$	6,378		$	5,593		$	5,763

MIDDLEFIELD BANC CORP.

Average Balance Sheets

(Dollar amounts in thousands, unaudited)


	For the Three Months Ended
	March 31, 2022							March 31, 2021
	Average Balance		Interest		Average Yield/Cost			Average Balance		Interest		Average Yield/Cost
Interest-earning assets:
Loans receivable ⁽³⁾	$	983,853	$	10,985		4.53	%	$	1,103,373	$	12,167		4.48	%
Investment securities ⁽³⁾		170,829		1,227		3.41	%		116,510		928		3.75	%
Interest-earning deposits with other banks ⁽⁴⁾		91,690		51		0.23	%		93,709		47		0.20	%

Total interest-earning assets		1,246,372		12,263		4.06	%		1,313,592		13,142		4.11	%

Noninterest-earning assets		85,667							71,007

Total assets	$	1,332,039						$	1,384,599

Interest-bearing liabilities:
Interest-bearing demand deposits	$	170,353	$	60		0.14	%	$	203,047	$	78		0.16	%
Money market deposits		184,265		212		0.47	%		195,275		228		0.47	%
Savings deposits		260,162		38		0.06	%		256,151		47		0.07	%
Certificates of deposit		193,657		416		0.87	%		269,493		852		1.28	%
Short-term borrowings		—		—		0.00	%		111		—		0.00	%
Other borrowings		12,943		69		2.16	%		14,258		75		2.12	%

Total interest-bearing liabilities		821,380		795		0.39	%		938,335		1,280		0.54	%

Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		359,656							295,199
Other liabilities		6,373							5,857
Stockholders’ equity		144,630							145,208

Total liabilities and stockholders’ equity	$	1,332,039						$	1,384,599

Net interest income			$	11,468						$	11,862

Interest rate spread ⁽¹⁾						3.67	%						3.57	%
Net interest margin ⁽²⁾						3.80	%						3.73	%
Ratio of average interest-earning assets to average interest-bearing liabilities						151.74	%						139.99	%

(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 $223 and $169 for the three months ended March 31, 2022 and 2021, respectively

(4)	Includes dividends received on restricted stock.


	For the Three Months Ended
	March 31, 2022							December 31, 2021
	Average Balance		Interest		Average Yield/Cost			Average Balance		Interest		Average Yield/Cost
Interest-earning assets:
Loans receivable ⁽³⁾	$	983,853	$	10,985		4.53	%	$	999,229	$	11,586		4.61	%
Investment securities ⁽³⁾		170,829		1,227		3.41	%		164,254		1,170		3.30	%
Interest-earning deposits with other banks ⁽⁴⁾		91,690		51		0.23	%		104,804		54		0.20	%

Total interest-earning assets		1,246,372		12,263		4.06	%		1,268,287		12,810		4.07	%

Noninterest-earning assets		85,667							90,556

Total assets	$	1,332,039						$	1,358,843

Interest-bearing liabilities:
Interest-bearing demand deposits	$	170,353	$	60		0.14	%	$	212,861	$	66		0.12	%
Money market deposits		184,265		212		0.47	%		180,201		214		0.47	%
Savings deposits		260,162		38		0.06	%		257,344		39		0.06	%
Certificates of deposit		193,657		416		0.87	%		204,904		464		0.90	%
Other borrowings		12,943		69		2.16	%		12,934		67		2.09	%

Total interest-bearing liabilities		821,380		795		0.39	%		868,244		850		0.37	%

Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		359,656							337,900
Other liabilities		6,373							6,983
Stockholders’ equity		144,630							145,716

Total liabilities and stockholders’ equity	$	1,332,039						$	1,358,843

Net interest income			$	11,468						$	11,960

Interest rate spread ⁽¹⁾						3.67	%						3.70	%
Net interest margin ⁽²⁾						3.80	%						3.82	%
Ratio of average interest-earning assets to average interest-bearing liabilities						151.74	%						146.07	%

(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 $223 and $210 for the three months ended March 31, 2022, and December 31, 2021, respectively.

(4)	Includes dividends received on restricted stock.

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