MIDDLEFIELD, Ohio--(BUSINESS WIRE)--Middlefield Banc Corp. (NASDAQ: MBCN) today reported financial results for the 2019 first half and second quarter ended June 30, 2019.
2019 First Half Financial Highlights versus 2018 First Half (unless noted):
- Net income increased 10.5% to $6.3 million
- Earnings per diluted share increased 9.7% to $1.93 per share
- Return on average equity increased 16 basis points to 9.58%
- Return on average tangible common equity(1) was 11.02%, in line with the prior year
- Book value per share was up 9.1% to $41.41 per share
- Tangible book value(1) per share was up 11.0% to $36.07 per share
- Total loans increased 5.8% to $998.2 million
- Total interest income improved 13.2% to $27.2 million
“Our second quarter financial results demonstrate the strength of our financial model as earnings per diluted share increased 5.2% from the same period a year ago to a second quarter record of $1.01 per diluted share, while our year-to-date tangible book value increased 11.0% to a record $36.07 per share,” stated Thomas G. Caldwell, President and Chief Executive Officer. “This is the first quarter in 12 quarters where our total loan portfolio contracted. While the local economies in our Central and Northeast Ohio markets remain stable, we believe businesses and consumers have become more cautious resulting in slower investments and a reduction in borrowings. We continue to focus on proactively managing risk, growing market share, and driving improvements in profitability and our second quarter and first half financial results reflect the continued successful execution of our profit focused strategic plan.”
“In addition, I am pleased with the progress we are making to diversify our income streams and grow noninterest income. Noninterest income increased 32.6% for the six months ended June 30, 2019, compared with the same period last year. We expect further improvements in noninterest income throughout the year as additional strategies are implemented.”
Income Statement
For the 2019 first half, net interest income increased 4.0% to $20.5 million, compared to $19.7 million for the same period last year. Year-to-date, the net interest margin was 3.67%, compared to 3.78% for the same period last year. Net interest income for the 2019 second quarter was $10.3 million, compared to $9.8 million for the 2018 second quarter. The 4.8% increase in net interest income for the 2019 second quarter was largely a result of a 13.5% increase in interest and fees on loans due to both an increase in the average balance of loans and an increase in the yield on loans. The net interest margin for the 2019 second quarter was 3.65%, compared to 3.74% for the same period of 2018.
For the 2019 first half, noninterest income was $2.4 million, compared to $1.8 million for the same period last year. Noninterest income for the 2019 second quarter was $1.3 million, compared to $1.0 million for the same period last year.
For the 2019 first half, noninterest expense increased 4.0% to $15.0 million, compared to $14.4 million for the same period last year. Operating costs in the 2019 second quarter increased 5.9% to $7.5 million from $7.1 million for the 2018 second quarter.
“Low quarterly charge-offs demonstrates continued strength in asset quality as a result of conservative underwriting and pricing standards, balanced portfolio composition, and stable economic trends in both of our Ohio markets,” said Donald L. Stacy, Chief Financial Officer. “While we have seen competition increase for both loans and deposits, we remain focused on managing risk and pricing on loans, while prudently managing our funding costs on deposits. Our loans to deposits ratio was 94.9% at June 30, 2019, compared to a 101.2% June 30, 2018, while our equity to assets increased 14 basis points over the past three months to 10.42%. Our strong asset quality, ample liquidity, and compelling capitalization provides us with the flexibility to pursue our growth opportunities, while supporting our business through various economic cycles.”
Balance Sheet
Total assets at June 30, 2019, increased 10.5% to approximately $1.29 billion from $1.17 billion at June 30, 2018.
Net loans at June 30, 2019, were $990.9 million, compared to $936.2 million at June 30, 2018, and $984.7 million at December 31, 2018. The 5.8% year-over-year improvement in net loans was primarily a result of an 8.6% increase in commercial mortgage loans, a 7.8% increase in residential mortgage loans, a 19.7% increase in real estate construction loans, partially offset by a 12.0% decline in consumer installment loans and a 16.1% decline in commercial and industrial loans.
Total deposits at June 30, 2019, was $1.05 billion, compared to $932.2 million at June 30, 2018. The 12.8% increase in deposits was a result of higher money market and time deposits, offset by lower noninterest-bearing demand deposits. The investment portfolio, which is entirely classified as available for sale, was $98.8 million June 30, 2019, compared with $100.0 million at June 30, 2018.
Stockholders’ Equity and Dividends
At the end of the 2019 second quarter, shareholders’ equity increased 9.4% to $134.3 million compared to $122.7 million at June 30, 2018. On a per share basis, shareholders’ equity at June 30, 2019, was $41.41 compared to $37.95 at the same period last year. Tangible stockholders’ equity(1) increased 11.3% to $117.0 million for the 2019 second quarter, compared to $105.1 million at June 30, 2018. On a per-share basis, tangible stockholders’ equity(1) was $36.07 at June 30, 2019, compared to $32.49 at June 30, 2018.
Through the first six months of 2019, the company declared cash dividends of $0.56 per share, compared to $0.61 per share for the same period last year. The dividend payout ratio for the 2019 six-month period was 28.9% compared to 34.5% for the same period last year.
At June 30, 2019, the company had an equity to assets leverage ratio of 10.42%, compared to 10.52% at June 30, 2018.
Asset Quality
The provision for loan losses for the 2019 second quarter was $110,000 versus $210,000 for the same period last year. Nonperforming assets at June 30, 2019, were $10.8 million, compared to $8.6 million at June 30, 2018. Net charge-offs for the 2019 second quarter were $12,000, or 0.00% of average loans, annualized, compared to $259,000, or 0.11% of average loans, annualized at June 30, 2018.
Underwriting standards are being maintained in the face of competitive pressures and potential problem credits are being proactively addressed resulting in some exits that has enhanced the overall health of the loan portfolio.
Year-to-date net charge-offs were $474,000, or 0.10% of average loans, annualized compared to $108,000, or 0.02% of average loans, annualized for the same period last year. The allowance for loan losses at June 30, 2019, stood at $7.3 million, or 0.73% of total loans, compared to $7.5 million or 0.79% of total loans at June 30, 2018.
Middlefield Banc Corp., headquartered in Middlefield, Ohio, is the bank holding company of The Middlefield Banking Company with total assets of $1.29 billion at June 30, 2019. The bank operates 15 full-service banking centers and an LPL Financial® brokerage office serving Beachwood, Chardon, Cortland, Dublin, Garrettsville, Mantua, Middlefield, Newbury, Orwell, 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) |
|||||||||||||||||||||||||
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|||||||||||||||||
| Balance Sheets (period end) | 2019 |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
||||||||||||||||
| ASSETS | |||||||||||||||||||||||||
| Cash and due from banks | $ |
|
133,372 |
|
$ |
|
121,045 |
|
$ |
|
107,933 |
|
$ |
|
81,951 |
|
$ |
|
42,451 |
|
|||||
| Federal funds sold | 2,010 |
|
- |
|
- |
|
- |
|
28,795 |
|
|||||||||||||||
| Cash and cash equivalents | 135,382 |
|
121,045 |
|
107,933 |
|
81,951 |
|
71,246 |
|
|||||||||||||||
| Equity securities, at fair value | 660 |
|
674 |
|
616 |
|
671 |
|
656 |
|
|||||||||||||||
| Investment securities available for sale, at fair value | 98,809 |
|
98,114 |
|
98,322 |
|
99,717 |
|
100,028 |
|
|||||||||||||||
| Loans held for sale | 431 |
|
1,230 |
|
597 |
|
925 |
|
1,132 |
|
|||||||||||||||
| Loans | 998,232 |
|
1,004,484 |
|
992,109 |
|
972,968 |
|
943,674 |
|
|||||||||||||||
| Less allowance for loan and lease losses | 7,304 |
|
7,206 |
|
7,428 |
|
7,494 |
|
7,502 |
|
|||||||||||||||
| Net loans | 990,928 |
|
997,278 |
|
984,681 |
|
965,474 |
|
936,172 |
|
|||||||||||||||
| Premises and equipment, net | 16,788 |
|
15,741 |
|
13,003 |
|
13,002 |
|
12,978 |
|
|||||||||||||||
| Goodwill | 15,071 |
|
15,071 |
|
15,071 |
|
15,071 |
|
15,071 |
|
|||||||||||||||
| Core deposit intangibles | 2,227 |
|
2,312 |
|
2,397 |
|
2,484 |
|
2,571 |
|
|||||||||||||||
| Bank-owned life insurance | 16,294 |
|
16,185 |
|
16,080 |
|
15,970 |
|
15,862 |
|
|||||||||||||||
| Accrued interest receivable and other assets | 11,832 |
|
13,285 |
|
9,698 |
|
11,063 |
|
10,363 |
|
|||||||||||||||
| TOTAL ASSETS | $ |
|
1,288,422 |
|
$ |
|
1,280,935 |
|
$ |
|
1,248,398 |
|
$ |
|
1,206,328 |
|
$ |
|
1,166,079 |
|
|||||
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|||||||||||||||||
2019 |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
|||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||
| Noninterest-bearing demand | $ |
|
198,817 |
|
$ |
|
194,298 |
|
$ |
|
203,410 |
|
$ |
|
202,580 |
|
$ |
|
205,192 |
|
|||||
| Interest-bearing demand | 94,266 |
|
107,246 |
|
92,104 |
|
99,342 |
|
94,715 |
|
|||||||||||||||
| Money market | 152,885 |
|
178,668 |
|
196,685 |
|
191,261 |
|
137,572 |
|
|||||||||||||||
| Savings | 194,505 |
|
184,662 |
|
222,954 |
|
224,704 |
|
204,408 |
|
|||||||||||||||
| Time | 411,034 |
|
375,357 |
|
300,914 |
|
295,874 |
|
290,359 |
|
|||||||||||||||
| Total deposits | 1,051,507 |
|
1,040,231 |
|
1,016,067 |
|
1,013,761 |
|
932,246 |
|
|||||||||||||||
| Short-term borrowings | 85,000 |
|
91,000 |
|
90,398 |
|
55,304 |
|
87,833 |
|
|||||||||||||||
| Other borrowings | 12,449 |
|
11,518 |
|
8,803 |
|
8,956 |
|
18,996 |
|
|||||||||||||||
| Accrued interest payable and other liabilities | 5,206 |
|
6,487 |
|
4,840 |
|
4,074 |
|
4,288 |
|
|||||||||||||||
| TOTAL LIABILITIES | 1,154,162 |
|
1,149,236 |
|
1,120,108 |
|
1,082,095 |
|
1,043,363 |
|
|||||||||||||||
| STOCKHOLDERS' EQUITY | |||||||||||||||||||||||||
| Common stock, no par value; 10,000,000 shares authorized, 3,646,497 shares issued, 3,242,585 shares outstanding as of June 30, 2019 | 86,590 |
|
86,437 |
|
85,925 |
|
85,687 |
|
85,544 |
|
|||||||||||||||
| Retained earnings | 60,517 |
|
58,139 |
|
56,037 |
|
53,520 |
|
51,121 |
|
|||||||||||||||
| Accumulated other comprehensive income (loss) | 1,377 |
|
641 |
|
(154 |
) |
(1,456 |
) |
(431 |
) |
|||||||||||||||
| Treasury stock, at cost; 403,912 shares as of June 30, 2019 | (14,224 |
) |
(13,518 |
) |
(13,518 |
) |
(13,518 |
) |
(13,518 |
) |
|||||||||||||||
| TOTAL STOCKHOLDERS' EQUITY | 134,260 |
|
131,699 |
|
128,290 |
|
124,233 |
|
122,716 |
|
|||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ |
|
1,288,422 |
|
$ |
|
1,280,935 |
|
$ |
|
1,248,398 |
|
$ |
|
1,206,328 |
|
$ |
|
1,166,079 |
|
|||||
MIDDLEFIELD BANC CORP. |
||||||||||||||
Consolidated Selected Financial Highlights |
||||||||||||||
(Dollar amounts in thousands) |
||||||||||||||
For the Three Months Ended |
|
For the Six Months Ended |
||||||||||||
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
June 30, |
|
June 30, |
||
| Statements of Income | 2019 |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2019 |
|
2018 |
|
| INTEREST AND DIVIDEND INCOME | ||||||||||||||
| Interest and fees on loans | $ |
12,706 |
$ |
12,488 |
$ |
12,467 |
$ |
11,821 |
$ |
11,197 |
$ |
25,194 |
$ |
22,251 |
| Interest-earning deposits in other institutions | 169 |
187 |
146 |
178 |
115 |
356 |
234 |
|||||||
| Federal funds sold | 25 |
7 |
17 |
8 |
7 |
32 |
21 |
|||||||
| Investment securities: | ||||||||||||||
| Taxable interest | 214 |
179 |
182 |
167 |
170 |
393 |
339 |
|||||||
| Tax-exempt interest | 553 |
565 |
589 |
598 |
550 |
1,118 |
1,075 |
|||||||
| Dividends on stock | 53 |
58 |
58 |
57 |
53 |
111 |
112 |
|||||||
| Total interest and dividend income | 13,720 |
13,484 |
13,459 |
12,829 |
12,092 |
27,204 |
24,032 |
|||||||
| INTEREST EXPENSE | ||||||||||||||
| Deposits | 3,277 |
2,945 |
2,828 |
2,178 |
1,979 |
6,222 |
3,619 |
|||||||
| Short-term borrowings | 79 |
213 |
78 |
296 |
192 |
292 |
468 |
|||||||
| Other borrowings | 95 |
96 |
92 |
104 |
118 |
191 |
240 |
|||||||
| Total interest expense | 3,451 |
3,254 |
2,998 |
2,578 |
2,289 |
6,705 |
4,327 |
|||||||
| NET INTEREST INCOME | 10,269 |
10,230 |
10,461 |
10,251 |
9,803 |
20,499 |
19,705 |
|||||||
| Provision for loan losses | 110 |
240 |
210 |
210 |
210 |
350 |
420 |
|||||||
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES NONINTEREST INCOME | 10,159 |
9,990 |
10,251 |
10,041 |
9,593 |
20,149 |
19,285 |
|||||||
| Service charges on deposit accounts | 530 |
508 |
498 |
491 |
472 |
1,038 |
925 |
|||||||
| Investment securities gains on sale, net | 190 |
- |
- |
- |
- |
190 |
- |
|||||||
| Gain (loss) on equity securities | (14) |
58 |
(55) |
15 |
13 |
44 |
31 |
|||||||
| Earnings on bank-owned life insurance | 109 |
105 |
110 |
108 |
98 |
214 |
210 |
|||||||
| Gains on sale of loans | 98 |
59 |
67 |
43 |
154 |
157 |
158 |
|||||||
| Other income | 386 |
402 |
357 |
291 |
311 |
788 |
510 |
|||||||
| Total noninterest income | 1,299 |
1,132 |
977 |
948 |
1,048 |
2,431 |
1,834 |
|||||||
| NONINTEREST EXPENSE | ||||||||||||||
| Salaries and employee benefits | 4,078 |
4,124 |
4,065 |
3,839 |
3,866 |
8,202 |
7,845 |
|||||||
| Occupancy expense | 496 |
553 |
465 |
460 |
472 |
1,049 |
1,008 |
|||||||
| Equipment expense | 291 |
235 |
273 |
262 |
201 |
526 |
434 |
|||||||
| Data processing costs | 549 |
465 |
446 |
481 |
402 |
1,014 |
879 |
|||||||
| Ohio state franchise tax | 261 |
259 |
220 |
244 |
244 |
520 |
359 |
|||||||
| Federal deposit insurance expense | 100 |
130 |
100 |
150 |
150 |
230 |
300 |
|||||||
| Professional fees | 403 |
431 |
364 |
346 |
327 |
834 |
772 |
|||||||
| Advertising expense | 200 |
203 |
227 |
236 |
230 |
403 |
458 |
|||||||
| Software amortization expense | 152 |
145 |
145 |
155 |
155 |
297 |
305 |
|||||||
| Core deposit intangible amortization | 85 |
85 |
87 |
87 |
87 |
170 |
178 |
|||||||
| Other expense | 867 |
870 |
851 |
832 |
929 |
1,737 |
1,870 |
|||||||
| Total noninterest expense | 7,482 |
7,500 |
7,243 |
7,092 |
7,063 |
14,982 |
14,408 |
|||||||
| Income before income taxes | 3,976 |
3,622 |
3,985 |
3,897 |
3,578 |
7,598 |
6,711 |
|||||||
| Income taxes | 686 |
611 |
560 |
593 |
481 |
1,297 |
1,009 |
|||||||
| NET INCOME | $ |
3,290 |
$ |
3,011 |
$ |
3,425 |
$ |
3,304 |
$ |
3,097 |
$ |
6,301 |
$ |
5,702 |
|
|
|
|
|
|
|
||||||||
MIDDLEFIELD BANC CORP. |
||||||||||||||||||||||||||||||||||
Consolidated Selected Financial Highlights |
||||||||||||||||||||||||||||||||||
(Dollar amounts in thousands, except per share and share amounts) |
||||||||||||||||||||||||||||||||||
For the Three Months Ended |
|
For the Six Months Ended |
||||||||||||||||||||||||||||||||
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
June 30, |
|
June 30, |
||||||||||||||||||||||
2019 |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2019 |
|
2018 |
||||||||||||||||||||||
| Per common share data | ||||||||||||||||||||||||||||||||||
| Net income per common share - basic | $ |
|
1.01 |
|
$ |
|
0.93 |
|
$ |
|
1.06 |
|
$ |
|
1.02 |
|
$ |
|
0.96 |
|
$ |
|
1.94 |
|
$ |
|
1.77 |
|
||||||
| Net income per common share - diluted | $ |
|
1.01 |
|
$ |
|
0.92 |
|
$ |
|
1.05 |
|
$ |
|
1.02 |
|
$ |
|
0.96 |
|
$ |
|
1.93 |
|
$ |
|
1.76 |
|
||||||
| Dividends declared per share | $ |
|
0.28 |
|
$ |
|
0.28 |
|
$ |
|
0.28 |
|
$ |
|
0.28 |
|
$ |
|
0.28 |
|
$ |
|
0.56 |
|
$ |
|
0.61 |
|
||||||
| Book value per share (period end) | $ |
|
41.41 |
|
$ |
|
40.44 |
|
$ |
|
39.54 |
|
$ |
|
38.38 |
|
$ |
|
37.95 |
|
$ |
|
41.41 |
|
$ |
|
37.95 |
|
||||||
| Tangible book value per share (period end) (2) (3) | $ |
|
36.07 |
|
$ |
|
35.11 |
|
$ |
|
34.16 |
|
$ |
|
32.96 |
|
$ |
|
32.49 |
|
$ |
|
36.07 |
|
$ |
|
32.49 |
|
||||||
| Dividends declared | $ |
|
912 |
|
$ |
|
909 |
|
$ |
|
908 |
|
$ |
|
905 |
|
$ |
|
903 |
|
$ |
|
1,821 |
|
$ |
|
1,966 |
|
||||||
| Dividend yield | 2.74 |
% |
2.76 |
% |
2.62 |
% |
2.36 |
% |
2.21 |
% |
2.75 |
% |
2.43 |
% |
||||||||||||||||||||
| Dividend payout ratio | 27.72 |
% |
30.19 |
% |
26.51 |
% |
27.39 |
% |
29.16 |
% |
28.90 |
% |
34.48 |
% |
||||||||||||||||||||
| Average shares outstanding - basic | 3,251,254 |
|
3,249,139 |
|
3,239,180 |
|
3,234,393 |
|
3,225,726 |
|
3,250,203 |
|
3,223,009 |
|
||||||||||||||||||||
| Average shares outstanding -diluted | 3,257,473 |
|
3,255,284 |
|
3,250,149 |
|
3,248,326 |
|
3,240,329 |
|
3,256,525 |
|
3,238,236 |
|
||||||||||||||||||||
| Period ending shares outstanding | 3,242,585 |
|
3,256,370 |
|
3,244,332 |
|
3,236,689 |
|
3,233,678 |
|
3,242,585 |
|
3,233,678 |
|
||||||||||||||||||||
| Selected ratios | ||||||||||||||||||||||||||||||||||
| Return on average assets | 1.09 |
% |
1.01 |
% |
1.15 |
% |
1.13 |
% |
1.11 |
% |
1.05 |
% |
1.03 |
% |
||||||||||||||||||||
| Return on average equity | 9.79 |
% |
9.36 |
% |
10.52 |
% |
10.33 |
% |
10.08 |
% |
9.58 |
% |
9.42 |
% |
||||||||||||||||||||
| Return on average tangible common equity (2) (4) | 11.23 |
% |
10.80 |
% |
12.17 |
% |
12.00 |
% |
11.77 |
% |
11.02 |
% |
11.02 |
% |
||||||||||||||||||||
| Efficiency (1) | 63.03 |
% |
64.30 |
% |
61.60 |
% |
61.65 |
% |
63.43 |
% |
63.66 |
% |
65.20 |
% |
||||||||||||||||||||
| Equity to assets at period end | 10.42 |
% |
10.28 |
% |
10.28 |
% |
10.30 |
% |
10.52 |
% |
10.42 |
% |
10.52 |
% |
||||||||||||||||||||
| Noninterest expense to average assets | 0.62 |
% |
0.62 |
% |
0.62 |
% |
0.61 |
% |
0.63 |
% |
1.24 |
% |
1.29 |
% |
||||||||||||||||||||
| (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. | ||||||||||||||||
| (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 |
|||||||||||||||||||||
For the Three Months Ended |
|
For the Six Months Ended |
|||||||||||||||||||
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
June 30, |
|
June 30, |
|||||||||
2019 |
|
2019 |
|
2018 |
|
2018 |
|
2018 |
|
2019 |
|
2018 |
|||||||||
| Yields | |||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||
| Loans receivable (2) | 5.08 |
% |
5.07 |
% |
5.09 |
% |
4.89 |
% |
4.82 |
% |
5.07 |
% |
4.82 |
% |
|||||||
| Investment securities (2) | 3.79 |
% |
3.80 |
% |
3.73 |
% |
3.67 |
% |
3.68 |
% |
3.80 |
% |
3.64 |
% |
|||||||
| Interest-earning deposits with other banks | 2.21 |
% |
2.26 |
% |
2.08 |
% |
1.95 |
% |
1.72 |
% |
2.24 |
% |
1.78 |
% |
|||||||
| Total interest-earning assets | 4.86 |
% |
4.85 |
% |
4.82 |
% |
4.65 |
% |
4.60 |
% |
4.85 |
% |
4.60 |
% |
|||||||
| Deposits: | |||||||||||||||||||||
| Interest-bearing demand deposits | 0.36 |
% |
0.30 |
% |
0.31 |
% |
0.30 |
% |
0.30 |
% |
0.33 |
% |
0.28 |
% |
|||||||
| Money market deposits | 1.40 |
% |
1.58 |
% |
1.56 |
% |
0.99 |
% |
0.88 |
% |
1.50 |
% |
0.85 |
% |
|||||||
| Savings deposits | 0.69 |
% |
0.81 |
% |
0.85 |
% |
0.68 |
% |
0.57 |
% |
0.75 |
% |
0.54 |
% |
|||||||
| Certificates of deposit | 2.35 |
% |
2.15 |
% |
1.99 |
% |
1.84 |
% |
1.79 |
% |
2.27 |
% |
1.72 |
% |
|||||||
| Total interest-bearing deposits | 1.56 |
% |
1.46 |
% |
1.38 |
% |
1.14 |
% |
1.07 |
% |
1.51 |
% |
1.01 |
% |
|||||||
| Non-Deposit Funding: | |||||||||||||||||||||
| Borrowings | 2.70 |
% |
2.57 |
% |
3.54 |
% |
2.30 |
% |
2.59 |
% |
2.57 |
% |
1.97 |
% |
|||||||
| Total interest-bearing liabilities | 1.59 |
% |
1.52 |
% |
1.43 |
% |
1.23 |
% |
1.16 |
% |
1.56 |
% |
1.09 |
% |
|||||||
| Cost of deposits | 1.26 |
% |
1.17 |
% |
1.09 |
% |
0.89 |
% |
0.84 |
% |
1.22 |
% |
0.79 |
% |
|||||||
| Cost of funds (3) | 1.29 |
% |
1.24 |
% |
1.14 |
% |
0.98 |
% |
0.92 |
% |
1.27 |
% |
0.88 |
% |
|||||||
| Net interest margin (1) | 3.65 |
% |
3.70 |
% |
3.76 |
% |
3.72 |
% |
3.74 |
% |
3.67 |
% |
3.78 |
% |
|||||||
| (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%. | |||||||||||
| (3) Includes non-interest bearing funding sources in the denominator. |
| MIDDLEFIELD BANC CORP. | ||||||||||||||
Consolidated Selected Financial Highlights |
||||||||||||||
(Dollar amounts in thousands, except per share and share amounts) |
||||||||||||||
For the Three Months Ended |
||||||||||||||
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
||
| End of Period Loan Balances | 2019 |
|
|
2019 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
| (Dollar amounts in thousands) | ||||||||||||||
| Commercial and industrial | $ |
85,520 |
$ |
85,756 |
$ |
83,857 |
$ |
93,144 |
$ |
101,975 |
||||
| Real estate - construction | 54,619 |
58,019 |
56,731 |
48,901 |
45,647 |
|||||||||
| Real estate - mortgage: | ||||||||||||||
| Residential | 345,830 |
340,483 |
336,487 |
329,609 |
320,858 |
|||||||||
| Commercial | 496,300 |
504,289 |
498,247 |
483,675 |
457,050 |
|||||||||
| Consumer installment | 15,963 |
15,937 |
16,787 |
17,639 |
18,144 |
|||||||||
| Total | $ |
998,232 |
$ |
1,004,484 |
$ |
992,109 |
$ |
972,968 |
$ |
943,674 |
||||
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
||
| Asset quality data | 2019 |
|
|
2019 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
| (Dollar amounts in thousands) | ||||||||||||||
| Non-accrual loans | $ |
10,671 |
$ |
10,472 |
$ |
6,595 |
$ |
7,288 |
$ |
8,357 |
||||
| 90 day past due and accruing | 58 |
- |
945 |
- |
15 |
|||||||||
| Non-performing loans (4) | 10,729 |
10,472 |
7,540 |
7,288 |
8,372 |
|||||||||
| Other real estate owned | 89 |
126 |
270 |
257 |
181 |
|||||||||
| Non-performing assets | $ |
10,818 |
$ |
10,598 |
$ |
7,810 |
$ |
7,545 |
$ |
8,553 |
||||
| Allowance for loan losses | $ |
7,304 |
$ |
7,206 |
$ |
7,428 |
$ |
7,494 |
$ |
7,502 |
||||
| Allowance for loan losses/total loans | 0.73% |
0.72% |
0.75% |
0.77% |
0.79% |
|||||||||
| Net charge-offs: | ||||||||||||||
| Quarter-to-date | $ |
12 |
$ |
462 |
$ |
276 |
$ |
218 |
$ |
259 |
||||
| Year-to-date | 474 |
462 |
602 |
326 |
108 |
|||||||||
| Net charge-offs to average loans, annualized: | ||||||||||||||
| Quarter-to-date | 0.00% |
0.19% |
0.11% |
0.09% |
0.11% |
|||||||||
| Year-to-date | 0.10% |
0.19% |
0.06% |
0.05% |
0.02% |
|||||||||
| Nonperforming loans/total loans | 1.07% |
1.04% |
0.76% |
0.75% |
0.89% |
|||||||||
| Allowance for loan losses/nonperforming loans | 68.08% |
68.81% |
98.51% |
102.83% |
89.61% |
|||||||||
| Nonperforming assets/total assets | 0.84% |
0.83% |
0.63% |
0.63% |
0.73% |
|||||||||
| (4) Non-performing 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 Six Months Ended |
||||||||||||||||
| (Dollar amounts in thousands) | June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
2019 |
|
|
2019 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
||
| Stockholders' Equity | $ |
134,260 |
$ |
131,699 |
$ |
128,290 |
$ |
124,233 |
$ |
122,716 |
$ |
134,260 |
$ |
122,716 |
||||||
| Less Goodwill and other intangibles | 17,298 |
17,383 |
17,468 |
17,555 |
17,642 |
17,298 |
17,642 |
|||||||||||||
| Tangible Common Equity | $ |
116,962 |
$ |
114,316 |
$ |
110,822 |
$ |
106,678 |
$ |
105,074 |
$ |
116,962 |
$ |
105,074 |
||||||
| Shares outstanding | 3,242,585 |
3,256,370 |
3,244,332 |
3,236,689 |
3,233,678 |
3,242,585 |
3,233,678 |
|||||||||||||
| Tangible book value per share | $ |
36.07 |
$ |
35.11 |
$ |
34.16 |
$ |
32.96 |
$ |
32.49 |
$ |
36.07 |
$ |
32.49 |
||||||
| Reconciliation of Average Equity to Return on Average Tangible Common Equity | For the Three Months Ended |
|
|
For the Six Months Ended |
||||||||||||||||
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
||
2019 |
|
|
2019 |
|
|
2018 |
|
|
2018 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
||
| Average Stockholders' Equity | $ |
134,836 |
$ |
130,450 |
$ |
129,208 |
$ |
126,865 |
$ |
123,228 |
$ |
132,643 |
$ |
122,115 |
||||||
| Less Average Goodwill and other intangibles | 17,339 |
17,422 |
17,510 |
17,597 |
17,683 |
17,381 |
17,728 |
|||||||||||||
| Average Tangible Common Equity | $ |
117,497 |
$ |
113,028 |
$ |
111,698 |
$ |
109,268 |
$ |
105,545 |
$ |
115,262 |
$ |
104,387 |
||||||
| Net income | $ |
3,290 |
3,011 |
3,425 |
3,304 |
3,097 |
6,301 |
5,702 |
||||||||||||
| Return on average tangible common equity (annualized) | 11.23% |
10.80% |
12.17% |
12.00% |
11.77% |
11.02% |
11.02% |
|||||||||||||