The Middlefield Banking Company

The Middlefield Banking Company

 

Middlefield Banc Corp. 2003 Press Releases

Middlefield Banc Corp. Reports Second Quarter Performance

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Contact Info:

15985 East High Street
P. O. Box 35
Middlefield, Ohio 44062
Phone: 440/632-1666 FAX: 440/632-1700
Date: July 17, 2003

MIDDLEFIELD, OHIO  Middlefield Banc Corp. (Pink Sheets: MBCN) reported second quarter 2003 net income of $614,950, up 7.5% from the $571,923 earned during the same period last year. Year-to-date earnings were $1,267,696, representing an increase of 13.1% over the net income reported for the first six months of 2002. Diluted earnings per share for the second quarter and for the year-to-date are $0.53 and $1.09. These compare to the similar 2002 figures of $0.49 and $0.97, respectively.

Total assets increased 16.5% over the prior year, ending the second quarter of 2003 at $249.9 million as compared to $214.6 million at June 30, 2002. Net loans at June 30, 2003, were $179.9 million, up 10.9% from June 30, 2002. The investment portfolio also experienced growth between the two periods, being up 22.6% over the 2002 balance. Deposit totals were $206,115,632 at the end of the second quarter of 2003. This is an increase of 15.3% from the level at mid-year 2002.

Thomas G. Caldwell, President and CEO, in reviewing the results, noted, "We are pleased with our earnings and growth results for the first half of the year. The operating environment for financial institutions has been very difficult as interest rates remain at forty year lows. Additionally, we have added the extra expense of a new office."

Caldwell continued, "It is our anticipation that the remainder of 2003 will find the economy continuing to improve, albeit at a sluggish rate. Our focus will be on minimizing risks while generating a proper level of income. Our commitment to our shareholders remains to provide them with a fair return, while generating conservative growth."

Return on average assets (ROA) were 1.01% and 1.07%, respectively for the quarter and year-to-date, as compared to 1.10% for both periods of 2002. Return on average equity was 11.78% for the quarter and 11.75% for the first six months of 2003. This compares to 2002 figures of 12.00% and 11.37%. The company’s net interest margin for the quarter and year-to-date was 3.94%, being lower for both periods than the prior year. The efficiency ratio for the first six months of 2003 was 59.11%, which was 20 basis points higher than the comparable 2002 result.

Non-interest income showed a 26.2% increase for the quarter and a 16.4% upward movement for the six-month period. In addition to an increase in service charges, the primary factor responsible for the increased non-interest income was the purchase of bank-owned life insurance at the end of the first quarter of 2003.

Non-interest expense for the quarter was $1.6 million, compared to $1.3 million for the same period last year and $2.9 million for the first half of 2003, incrementally higher than the $2.6 million reported for the year-ago period. The increase in expenses primarily reflects normal salary adjustments, an increase in health insurance costs, the addition of a new office, as well as the introduction of a new logo and marketing image for the company and its subsidiary bank.

"Although our non-interest expense totals were above the levels that have been our norm, we recognize that the new office and new image will have some near term impact," stated Donald L. Stacy, Treasurer and Chief Financial Officer. "However, both of these initiatives have been very positively received. We are especially pleased with the reception of our new logo and marketing campaign, as they better portray our abilities to deliver financial services and the overall dynamic nature of our company."

Credit quality remained a strong focus for the company. For the quarter and year-to-date, the company has experienced a net recovery of loans charged off. Non-performing loan and non-performing asset levels, at June 30, 2003, were 0.28% and 0.20%, respectively. The comparable figures at the same point in 2002 were 0.32% and 0.24%. President and Chief Executive Officer Thomas G. Caldwell stated, "Although our local economies have encountered some difficulties in the first half of this year, we have brought extra attention to the quality of our loan portfolio. We believe that our underwriting standards and our attention to our local communities and customers has permitted us to keep our exposures at reasonable levels."

Middlefield Banc Corp. is a financial holding company for The Middlefield Banking Company. Full-service banking offices are located in Chardon, Garrettsville, Mantua, Middlefield, and Orwell, Ohio.

This announcement contains forward-looking statements that involve risk and uncertainties, including changes in general economic and financial market conditions and the Company’s ability to execute its business plans. Although management believes the expectations reflected in such statements are reasonable, actual results may differ materially.

 

 

Middlefield Banc Corp.

 

 

Financial Highlights

 

 

Year-to-Date Data

 

 

(Dollars in thousands, except per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 2003

 

 

March 2003

 

 

June 2002

 

 

 

 

 

 

 

 

 

 

Earnings:

 

 

 

 

 

 

 

 

 

Net interest income

$

4,311,909

 

$

2,136,490

 

$

3,877,135

 

Provision for loan losses

 

210,000

 

 

105,000

 

 

150,000

 

Non-interest income

 

634,139

 

 

276,037

 

 

544,792

 

Security (losses) gains

 

542

 

 

542

 

 

0

 

Non-interest expense

 

2,923,966

 

 

1,310,758

 

 

2,605,094

 

Federal income taxes

 

544,928

 

 

344,565

 

 

546,000

 

Net income

$

1,267,696

 

$

652,746

 

$

1,120,833

 

 

 

 

 

 

 

 

 

 

Per share:

 

 

 

 

 

 

 

 

 

Basic earnings

 

1.10

 

 

0.56

 

 

0.97

 

Diluted earnings

 

1.09

 

 

0.56

 

 

0.97

 

Common dividends

 

0.40

 

 

0.20

 

 

0.35

 

Book value

 

19.61

 

 

19.06

 

 

17.84

 

 

 

 

 

 

 

 

 

 

Weighted average shares

 

 

 

 

 

 

 

 

 

outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

1,156,188

 

 

1,156,130

 

 

1,158,427

 

Diluted

 

1,158,877

 

 

1,158,478

 

 

1,159,249

 

 

 

 

 

 

 

 

 

 

Period end balance sheet:

 

 

 

 

 

 

 

 

 

Assets

$

249,885,875

 

$

240,086,224

 

$

214,615,550

 

Securities

 

40,507,882

 

 

42,838,505

 

 

33,048,781

 

Total loans

 

182,418,551

 

 

179,433,233

 

 

164,357,893

 

Allowance for loan losses

 

2,512,866

 

 

2,389,612

 

 

2,162,043

 

Deposits

 

206,115,632

 

 

194,702,460

 

 

178,795,328

 

Total shareholders' equity

 

22,709,943

 

 

22,028,677

 

 

20,668,699

 

Total capital ratio

 

9.09%

 

 

9.18%

 

 

9.63%

 

 

 

 

 

 

 

 

 

 

Average balance sheet:

 

 

 

 

 

 

 

 

 

Assets

$

237,073,107

 

$

231,844,604

 

$

203,625,183

 

Earning assets

 

225,224,016

 

 

222,957,446

 

 

194,858,603

 

Loans

 

178,782,048

 

 

176,432,645

 

 

157,931,380

 

Deposits

 

194,162,968

 

 

189,227,570

 

 

171,040,454

 

Shareholders' equity

 

21,581,058

 

 

21,379,486

 

 

19,722,881

 

 

 

 

 

 

 

 

 

 

Key ratios (%):

 

 

 

 

 

 

 

 

 

Return on average assets (ROA)

 

1.07%

 

 

1.13%

 

 

1.10%

 

Return on average shareholders'

 

 

 

 

 

 

 

 

 

   equity (ROE)

 

11.75%

 

 

12.21%

 

 

11.37%

 

Net interest margin

 

3.94%

 

 

3.94%

 

 

4.08%

 

Net overhead

 

2.03%

 

 

1.86%

 

 

2.11%

 

Efficiency ratio

 

59.11%

 

 

54.32%

 

 

58.91%

 

 

 

 

 

 

 

 

 

 

Credit quality:

 

 

 

 

 

 

 

 

 

Non-accrual loans

$

509,545

 

$

551,000

 

$

50,000

 

Restructured loans

 

0

 

 

0

 

 

0

 

90 day past due and accruing

 

0

 

 

132,000

 

 

475,000

 

Non-performing loans

 

509,545

 

 

683,000

 

 

525,000

 

Other real estate owned

 

0

 

 

0

 

 

0

 

Non-performing assets

$

509,545

 

$

683,000

 

$

525,000

 

 

 

 

 

 

 

 

 

 

 

Charge-offs

$

28,319

 

$

17,609

 

$

91,103

 

Recoveries

 

30,700

 

 

1,735

 

 

40,894

 

Net charge-offs (recoveries)

$

(2,381)

 

$

15,874

 

$

50,209

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses as a percent

 

 

 

 

 

 

 

 

 

   of period-end loans (%)

 

1.38%

 

 

1.33%

 

 

1.32%

 

Net charge-offs (annualized) as a percent

 

 

 

 

 

 

 

 

 

   of average loans (%)

 

0.00%

 

 

0.04%

 

 

0.06%

 

Non-performing loans as a percent of

 

 

 

 

 

 

 

 

 

   loans

 

0.28%

 

 

0.38%

 

 

0.32%

 

Non-performing assets as a percent of

 

 

 

 

 

 

 

 

 

   assets

 

0.20%

 

 

0.28%

 

 

0.24%

 

 

 

 

 

Middlefield Banc Corp.

 

 

 

Consolidated Statements of Income

 

 

 

Quarterly Data

 

 

 

(Dollars in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 2003

 

 

March 2003

 

 

June 2002

 

 

 

 

 

 

 

 

 

 

 

INTEREST INCOME

 

 

 

 

 

 

 

 

 

Loans (including fees)

$

3,209,192

 

$

3,129,988

 

$

3,078,538

 

Deposits in other institutions

 

4,719

 

 

7,101

 

 

13,627

 

Securities:

 

 

 

 

 

 

 

 

 

 

Taxable

 

275,853

 

 

308,608

 

 

296,483

 

 

Exempt from federal income taxes

 

113,502

 

 

119,590

 

 

101,085

 

Federal funds sold and other temp. investments

9,906

 

 

9,307

 

 

0

 

Dividends on FHLB stock

 

12,926

 

 

12,929

 

 

9,407

 

 

Total interest income

 

3,626,098

 

 

3,587,523

 

 

3,499,140

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

Deposits

 

1,236,828

 

 

1,245,359

 

 

1,356,054

 

Federal funds purchased and securities sold

 

 

 

 

 

 

 

 

 

 

under agreement to repurchase

 

1,049

 

 

2,290

 

 

2,274

 

Federal Home Loan Bank advances

 

212,802

 

 

203,384

 

 

153,932

 

 

Total interest expense

 

1,450,679

 

 

1,451,033

 

 

1,512,260

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

2,175,419

 

 

2,136,490

 

 

1,986,880

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

105,000

 

 

105,000

 

 

75,000

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for

 

 

 

 

 

 

 

 

 

 

   loan losses

 

2,070,419

 

 

2,031,490

 

 

1,911,880

 

 

 

 

 

 

 

 

 

 

 

NON-INTEREST INCOME

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

251,910

 

 

238,651

 

 

244,138

 

Security gains (losses)

 

0

 

 

542

 

 

0

 

Other operating income

 

106,192

 

 

37,386

 

 

39,577

 

 

Total non-interest income

 

358,102

 

 

276,579

 

 

283,715

 

 

 

 

 

 

 

 

 

 

 

NON-INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

810,919

 

 

646,471

 

 

659,858

 

Net occupancy

 

106,492

 

 

98,552

 

 

87,960

 

Equipment

 

57,586

 

 

80,026

 

 

81,167

 

Data processing costs

 

70,958

 

 

116,472

 

 

84,163

 

Ohio state franchise tax

 

75,000

 

 

75,050

 

 

67,500

 

Other expense

 

492,253

 

 

294,187

 

 

365,024

 

 

Total non-interest expense

 

1,613,208

 

 

1,310,758

 

 

1,345,672

Income before federal income taxes

 

815,313

 

 

997,311

 

 

849,923

Income tax expense

 

200,363

 

 

344,565

 

 

278,000

Net income

$

614,950

 

$

652,746

 

$

571,923

 

 

 

 

 

 

 

 

 

 

 

NET INCOME PER COMMON SHARE:

 

 

 

 

 

 

 

 

 

 

Basic

$

0.53

 

$

0.56

 

$

0.49

 

 

Diluted

$

0.53

 

$

0.56

 

$

0.49

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Middlefield Banc Corp.

 

 

 

Consolidated Statements of Income

 

 

 

Year-to-Date Data

 

 

 

(Dollars in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 2003

 

 

March 2003

 

 

June 2002

 

 

 

 

 

 

 

 

 

 

 

INTEREST INCOME

 

 

 

 

 

 

 

 

 

Loans (including fees)

$

6,339,180

 

$

3,129,988

 

$

6,078,155

 

Deposits in other institutions

 

11,820

 

 

7,101

 

 

30,063

 

Securities:

 

 

 

 

 

 

 

 

 

 

Taxable

 

584,461

 

 

308,608

 

 

581,569

 

 

Exempt from federal income taxes

 

233,092

 

 

119,590

 

 

210,616

 

Federal funds sold and other temp. investments

19,213

 

 

9,307

 

 

0

 

Dividends on FHLB stock

 

25,855

 

 

12,929

 

 

25,060

 

 

Total interest income

 

7,213,621

 

 

3,587,523

 

 

6,925,463

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

Deposits

 

2,482,187

 

 

1,245,359

 

 

2,744,626

 

Federal funds purchased and securities sold

 

 

 

 

 

 

 

 

 

 

under agreement to repurchase

 

3,339

 

 

2,290

 

 

3,546

 

Federal Home Loan Bank advances

 

416,186

 

 

203,384

 

 

300,156

 

 

Total interest expense

 

2,901,712

 

 

1,451,033

 

 

3,048,328

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

4,311,909

 

 

2,136,490

 

 

3,877,135

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

210,000

 

 

105,000

 

 

150,000

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for

 

 

 

 

 

 

 

 

 

 

   loan losses

 

4,101,909

 

 

2,031,490

 

 

3,727,135

 

 

 

 

 

 

 

 

 

 

 

NON-INTEREST INCOME

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

490,561

 

 

238,651

 

 

467,048

 

Security gains (losses)

 

542

 

 

542

 

 

0

 

Other operating income

 

143,578

 

 

37,386

 

 

77,744

 

 

Total non-interest income

 

634,681

 

 

276,579

 

 

544,792

 

 

 

 

 

 

 

 

 

 

 

NON-INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

1,457,390

 

 

646,471

 

 

1,251,923

 

Net occupancy

 

205,044

 

 

98,552

 

 

175,202

 

Equipment

 

137,612

 

 

80,026

 

 

164,375

 

Data processing costs

 

187,430

 

 

116,472

 

 

169,131

 

Ohio state franchise tax

 

150,050

 

 

75,050

 

 

135,050

 

Other expense

 

786,440

 

 

294,187

 

 

709,413

 

 

Total non-interest expense

 

2,923,966

 

 

1,310,758

 

 

2,605,094

Income before federal income taxes

 

1,812,624

 

 

997,311

 

 

1,666,833

Income tax expense

 

544,928

 

 

344,565

 

 

546,000

Net income

$

1,267,696

 

$

652,746

 

$

1,120,833

 

 

 

 

 

 

 

 

 

 

 

NET INCOME PER COMMON SHARE:

 

 

 

 

 

 

 

 

 

 

Basic

$

1.10

 

$

0.56

 

$

0.97

 

 

Diluted

$

1.09

 

$

0.56

 

$

0.97

 

 

 

 

 

 

 

 

 

 

 

 

 

Middlefield Banc Corp.

 

Consolidated Balance Sheets

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 2003

 

 

March 2003

 

 

June 2002

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Cash and due from banks

$

6,102,703

 

$

5,408,657

 

$

6,268,312

Federal funds sold and other temp. investments.

 

8,809,402

 

 

574,402

 

 

4,299,066

Securities:

 

 

 

 

 

 

 

 

   Available for sale

 

37,241,937

 

 

38,050,327

 

 

25,423,981

   Held to maturity

 

3,265,945

 

 

4,788,178

 

 

7,624,800

      Total securities

 

40,507,882

 

 

42,838,505

 

 

33,048,781

 

 

 

 

 

 

 

 

 

Loans:

 

182,418,551

 

 

179,433,233

 

 

164,357,893

Less:  reserve for loan losses

 

2,512,866

 

 

2,389,612

 

 

2,162,043

      Net loans

 

179,905,685

 

 

177,043,621

 

 

162,195,850

Premises and equipment

 

6,908,111

 

 

6,720,069

 

 

6,328,866

Accrued interest receivable and other assets

 

7,652,092

 

 

7,500,970

 

 

2,474,675

      Total assets

$

249,885,875

 

$

240,086,224

 

$

214,615,550

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

   Demand -- non-interest bearing

$

29,595,597

 

$

25,281,315

 

$

26,039,948

   Demand -- interest bearing

 

21,096,468

 

 

23,300,237

 

 

16,968,316

   Savings

 

54,867,549

 

 

51,377,777

 

 

46,806,973

   Time deposits

 

100,556,018

 

 

94,743,131

 

 

88,980,091

      Total deposits

 

206,115,632

 

 

194,702,460

 

 

178,795,328

Federal funds purchased and securities sold

 

 

 

 

 

 

 

 

   under agreements to repurchase

 

399,176

 

 

2,389,576

 

 

1,095,161

Accrued expenses and other liabilities

 

667,174

 

 

782,594

 

 

907,721

Federal Home Loan Bank advances

 

19,993,950

 

 

20,182,917

 

 

13,148,641

      Total liabilities

 

227,175,932

 

 

218,057,547

 

 

193,946,851

Shareholders' equity:

 

 

 

 

 

 

 

 

   Common stock, no par value; 5,000,000

 

 

 

 

 

 

 

 

      shares authorized

 

8,006,055

 

 

7,944,216

 

 

7,735,893

   Retained earnings

 

15,856,470

 

 

15,472,547

 

 

14,116,847

   Accumulated other comprehensive income

 

592,327

 

 

356,823

 

 

292,399

   Treasury stock

 

(1,744,909)

 

 

(1,744,909)

 

 

(1,476,440)

      Total shareholders' equity

 

22,709,943

 

 

22,028,677

 

 

20,668,699

      Total liabilities and shareholders' equity

$

249,885,875

 

$

240,086,224

 

$

214,615,550

 

 

 

 

 

 

 

 

 

Miscellaneous data:

 

 

 

 

 

 

 

 

   Common shares issued

 

1,213,255

 

 

1,211,162

 

 

1,204,473

   Treasury shares

 

55,309

 

 

55,309

 

 

45,722

   Bank owned life insurance (in other assets)

$

5,068,286

 

$

5,000,000

 

$

0

 

 

 

 

 

 

 

 

 

The Middlefield Banking Company, Member FDICEqual Housing Lender 
Copyright © 2004- Middlefield Banc Corp.
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