• personal banking
  • business banking
  • online banking
  • investments
  • planning/tools

Middlefield Banc Corp. Earnings Increase 16% in Second Quarter 2002

Middlefield Banc Corp. 2002 Press Releases

Font Size 
Facebook Icon   Twitter Icon   Email Icon   Printer Icon
Contact Info: Thomas G. Caldwell
President and CEO
440.632.1666 Ext. 3200
Donald L. Stacy
Treasurer and Chief Financial Officer
440.632.1666 Ext. 3231
Date: July 16, 2002

MIDDLEFIELD, OHIO  Middlefield Banc Corp. (MBCN) today reported second quarter 2002 net income of $572,000 compared to $492,000 for the same period last year. This represents a 16.30% increase over the second quarter of 2001. Year-to-date earnings were $1,121,000 versus $1,029,000 for the first two quarters of 2001. On a per share basis, basic and diluted earnings were $1.02 for the first half of 2002, an increase of 8.51% over the first half of 2001.

For 2002, Return on Average Equity and Return on Average Assets for the quarter were 11.08% and 1.09%, respectively. Comparable Returns for the prior year were 11.03% and 1.14%. The ratio of capital to assets, at the end of the quarter, stood at 9.63%, well above regulatory minimums.

Net interest income for the quarter was 14.33% higher than the second quarter of 2001. The comparable figures are $1,987,000 for 2002 and $1,738,000 for 2001. Noninterest income for the quarter was up 5.89% to $284,000. Noninterest expense for the quarter was $1,346,000, an increase of 8.77% over the second quarter of 2001. The increase in noninterest expense is primarily attributable to equipment expense, as well as expenses related to the startup of a new branch office and internet banking.

For the first six months of 2002, net interest income was $3,877,000, an increase of 14.66% from the first half of 2001. A reduction in total interest expense was the primary factor in the increase. Noninterest expense for the period was $2,605,000, and was 11.93% higher than the same period of last year. Noninterest income increased a modest 3.49% over the comparable period.

Middlefield Banc Corp.’s balance sheet for the quarter and year-to-date reflected continued asset growth. Total assets at June 30, 2002, were 15.73% higher than the same point in 2001. Net loans increased 14.82% to $162,196,000. Total deposits also increased significantly, being $178,791,000 at June 30, 2002, an increase of 14.92% from the prior year. Shareholders’ equity at the quarter end was $20,674,000, 8.43% higher than June 30, 2001.

Commenting on the results, President and Chief Executive Officer Thomas G. Caldwell noted, "Although our earnings for 2001 were negatively impacted by the falling interest rates seen during that year, we have had the opportunity during the first half of 2002 to re-price our liabilities at a more rapid pace and to positively effect our bottom line. We are very pleased with the growth that we have attained on both sides of the balance sheet. However, we fully realize that we must continue to be attentive to the needs of our customers by supplying them with only the very best of service, pricing and product."

Credit quality at the end of the second quarter continued within established guidelines. Loans delinquent thirty days or more constituted 1.07% of the loan portfolio. Net charge-offs for the first six months were $50,200. Continuing at a strong level, the loan loss reserve, however, as a percentage of total loans decreased to 1.32%. This decrease was the result of significant growth in the loan portfolio, much of which was concentrated in low risk residential real estate loans. At June 30, 2002, the ratios of non-performing loans/loans and non-performing assets/total assets were 0.03% and 0.02%, respectively.

"We are very satisfied with the first six months of 2002, following on the heels of a solid performance in 2001," noted Donald L. Stacy, Chief Financial Officer. "Our objectives for this year reflect the overall conservative nature of our organization. Therefore, we are very pleased to be able to report these results that reflect our commitment to increasing earnings and shareholder value."

Headquartered in Middlefield, Ohio, Middlefield Banc Corp. is a one-bank holding company for The Middlefield Banking Company. The Middlefield Banking Company , which operates offices in Chardon, Garrettsville, Mantua and Middlefield, has received regulatory approval for a new office in Orwell, Ohio. Middlefield Banc Corp. trades under the symbol MBCN.

The information contained in this press release contains forward-looking statements regarding future performance which are not historical facts and which involve risk and uncertainties. Actual results and performance could differ materially from those contemplated by these forward looking statements.

 

 

For the Three Months Ended June 30,

 

 

2002

 

 

2001

% Change

Earnings (in 000s)

 

 

 

 

 

 

   Total interest income

$

3,499

 

$

3,463

1.05%

   Total interest expense

 

1,512

 

 

1,725

-12.32%

   Net interest income

 

1,987

 

 

1,738

14.33%

   Provision for loan losses

 

75

 

 

41

82.93%

   Total noninterest income

 

284

 

 

268

5.89%

   Total noninterest expense

 

1,346

 

 

1,238

8.77%

   Net income

 

572

 

 

492

16.30%

 

 

 

 

 

 

 

Per share (1)

 

 

 

 

 

  

 

   Earnings per common share - Basic

$

0.52

 

$

0.45

15.56%

   Earnings per common share - Diluted

 

0.52

 

 

0.44

18.18%

   Cash dividends paid

 

0.18

 

 

0.14

28.57%

 

 

 

 

 

 

 

Shares Outstanding

 

 

 

 

 

 

   Average - Basic

 

1,103,671

 

 

1,102,954

---

   Average - Diluted

 

1,104,177

 

 

1,104,694

---

 
 

 

 

For the Six Months Ended June 30,

 

 

2002

 

 

2001

% Change

Earnings (in 000s)

 

 

 

 

 

 

   Total interest income

$

6,925

 

$

6,762

2.42%

   Total interest expense

 

3,048

 

 

3,381

-9.84%

   Net interest income

 

3,877

 

 

3,381

14.66%

   Provision for loan losses

 

150

 

 

80

87.50%

   Total noninterest income

 

545

 

 

526

3.49%

   Total noninterest expense

 

2,605

 

 

2,328

11.93%

   Net income

 

1,121

 

 

1,029

8.96%

 

 

 

 

 

 

 

Per share (1)

 

 

 

 

 

 

   Earnings per common share - Basic

$

1.02

 

$

0.94

8.51%

   Earnings per common share - Diluted

 

1.02

 

 

0.94

8.51%

   Cash dividends paid

 

0.36

 

 

0.28

28.57%

   Book value (end of period)

 

18.73

 

 

17.29

8.33%

 

 

 

 

 

 

 

Shares Outstanding

 

 

 

 

 

 

   Average - Basic

 

1,103,445

 

 

1,102,954

---

   Average - Diluted

 

1,104,228

 

 

1,104,765

---

 

 

 

 

 

 

 

At period end (in 000s)

 

 

 

 

 

 

   Total assets

$

214,616

 

$

185,438

15.73%

   Total deposits

 

178,791

 

 

155,575

14.92%

   Net loans receivable

 

162,196

 

 

141,255

14.82%

   Securities

 

33,049

 

 

30,720

7.58%

   Shareholders equity

 

20,674

 

 

19,067

8.43%

 

 

 

 

 

 

 

Key performance ratios

 

 

 

 

 

 

   Return on average assets

 

1.09%

 

 

1.14%

-4.39%

   Return on average equity

 

11.08%

 

 

11.03%

0.45%

   Efficiency ratio

 

58.91%

 

 

59.56%

-1.09%

   Net Interest Margin

 

3.97%

 

 

3.87%

2.58%

   Allowance/loans

 

1.32%

 

 

1.41%

-6.38%

   Equity to assets at period end

 

9.63%

 

 

10.28%

-6.32%

 

 

 

 

 

 

 

(1)  Per share data has been restated to reflect the five percent stock dividend paid in 2002.