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Middlefield Banc Corp. Reports First Quarter EPS of $0.50<

Middlefield Banc Corp. 2002 Press Releases

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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: April 11, 2002

MIDDLEFIELD, OHIO  Middlefield Banc Corp. (MBCN) today announced first quarter 2002 net income of $549,000 or $0.50 per diluted share. This compares with net income of $537,000 or $0.49 per diluted share reported in the first quarter of 2001. Return on Average Assets (ROA) was 1.09% and return on average equity (ROE) was 11.01% for the quarter versus 1.20% and 11.63% for the year ago quarter.

Commenting on first quarter results, Thomas G. Caldwell, President and Chief Executive Officer remarked, "Although we are pleased to report increased earnings for the quarter, we realize that we need to accelerate our revenue growth and expense reductions. Our loan generation during the quarter should have a positive influence in this area. We also recognize that the costs associated with our new Chardon office and our transactional internet banking capability will be a short term drain on earnings."

"We are very pleased with the reception that both of these efforts had. Our Chardon office has exceeded its first year goals within the first four months of operation," Caldwell continued. "Additionally, our transactional banking site (www.middlefieldbank.com) has been received very positively by our customer base. With these capital investments, our customers now have the latest in banking technology and the ultimate in service and convenience."

Net interest income on a fully tax equivalent basis was $1.89 million for the first quarter of 2002 compared to $1.64 million for the first quarter of 2001. This increase of 15% was primarily attributable to a reduction in the cost of deposits, especially certificates of deposit which have repriced at lower market rates. The net interest margin was 4.11% this quarter, a seven basis point increase from the first quarter of 2001.

Non-interest income for the quarter was relatively flat. Non-interest expense, however, increased 15.51%. Costs related to maintenance and data processing were among those increasing the most. These were driven by directed efforts to expand the technological capabilities of the company, including internet and imaging enhancements. Also contributing to the sharp rise in non-interest expense was a newly initiated director retirement program. This lead to a slightly higher efficiency ratio, being 58.54%. The ratio for the first quarter of 2001 was 57.31%.

Period ending assets were $203,844,000, up 12.32% from the prior year quarter. This marks the first time that the company has reported assets in excess of $200 million. Both deposit and loan growth contributed
to the strong asset growth. Total deposits at period end were $171,016,000, an increase of 12.68% above 2001 levels. Net loans were up 16.63% from the comparable period, ending at $157,213,000.

Shareholders’ equity was $20,092,000 at quarter end. Common stock dividends paid were $0.18 per share, representing a 36% payout ratio. The cash dividend was 28.6% higher than that paid during the first quarter of 2001.

First quarter loan loss provision was $75,000. This represents an increase of 92.31% from the first quarter of 2001. Net charge-offs for the quarter were $42,006, or 0.11% of average loans outstanding on an annualized basis. The allowance stands at 1.32%. Non-performing loans were 0.17% of total loans. Reserve coverage of non-performing assets was 7.65 times.

"Although economic conditions have proved challenging during the last year, our overall credit quality has remained strong," noted Donald L. Stacy, Chief Financial Officer. "The increased provision for loan losses is in recognition of the continued growth that we are recognizing in the loan portfolio. Our losses have been minimal and our delinquency remains at a manageable level."

Headquartered in Middlefield, Ohio, Middlefield Banc Corp. is a one-bank holding company for The Middlefield Banking Company. The Middlefield Banking Company , operates five full service banking offices in Chardon, Garrettsville, Mantua and Middlefield, 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 March 31

 

 

 

2002

 

 

2001

 

% Change

Earnings (in 000s)

 

 

 

 

 

 

 

 

   Total interest and dividend income

$

3,426

 

$

3,299

 

3.85%

   Total interest expense

 

 

1,536

 

 

1,656

 

-7.22%

   Net interest income

 

 

1,890

 

 

1,644

 

14.99%

   Provision for loan losses

 

 

75

 

 

39

 

92.31%

   Total noninterest income

 

 

261

 

 

259

 

0.93%

   Total noninterest expense

 

 

1,259

 

 

1,090

 

15.51%

   Net income

 

 

549

 

 

537

 

2.17%

 

 

 

 

 

 

 

 

 

Per share

 

 

 

 

 

 

 

 

   Earnings per common share - Basic

$

0.50

 

$

0.49

 

2.04%

   Earnings per common share - Diluted

 

0.50

 

 

0.49

 

2.04%

   Cash dividends paid

 

 

0.18

 

 

0.14

 

28.57%

   Book value (end of period)

 

 

18.21

 

 

17.03

 

6.95%

 

 

 

 

 

 

 

 

 

 

At period end (in 000s)

 

 

 

 

 

 

 

 

   Total assets

 

$

203,844

 

$

181,484

 

12.32%

   Total deposits

 

 

171,016

 

 

151,771

 

12.68%

   Net loans receivable

 

 

157,213

 

 

134,796

 

16.63%

   Securities

 

 

31,380

 

 

29,863

 

5.08%

   Shareholders equity

 

 

20,092

 

 

18,728

 

7.28%

 

 

 

 

 

 

 

 

 

Key performance ratios

 

 

 

 

 

 

 

 

   Return on average assets

 

 

1.09%

 

 

1.20%

 

-9.17%

   Return on average equity

 

 

11.01%

 

 

11.63%

 

-5.33%

   Efficiency ratio

 

 

58.54%

 

 

57.31%

 

2.15%

   Net interest margin

 

 

4.11%

 

 

4.04%

 

1.73%

   Allowance/loans

 

 

1.32%

 

 

1.50%

 

-12.14%

   Equity to assets at period end

 

 

9.86%

 

 

10.32%

 

-4.48%