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Middlefield Banc Corp. Reports 10.14% Earnings Increase for 2002

Middlefield Banc Corp. 2003 Press Releases

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Contact Info: James R. Heslop, 2nd
Executive Vice President/Chief Operating Officer
440.632.1666 Ext. 3219
Date: January 16, 2003

MIDDLEFIELD, OHIO  Middlefield Banc Corp. (Pink Sheets: MBCN) reported consolidated net income for 2002 of $2,500,949. This represents an increase of 10.14% over the $2,270,607 recorded in 2001. On a per share basis, basic earnings per share were $2.16 for the twelve months ended December 31, 2002 compared to $1.96 for the twelve months ended December 31, 2001, an increase of 10.10%.

For the fourth quarter of 2002, net consolidated earnings were $741,000, an increase of 27.27% over the comparable 2001 period. On a basic and diluted earnings per share basis, earnings for 2002 were $0.64, while 2001 had fourth quarter earnings of $0.50 per share. On an earnings per share basis, the increase was 28.0%.

Middlefield’s total assets ended 2002 at $226,246,000, an increase of 14.35% over the $197,858,000 assets recorded at December 31, 2001. Net loans at December 31, 2002 were $172,643,000, up 14.51% from December 31, 2001, while deposits increased 11.95% to end the year 2002 at $187,384,000. Stockholders’ Equity at year end 2002 was $21,746,000, an increase of 9.90% from the prior year end.

Thomas G. Caldwell, President and Chief Executive Officer stated, "We are very pleased with the results that we were able to achieve during the year. 2002 proved to be a challenging year as interest rates remained at record low levels. Despite those obstacles, we were able to achieve earnings growth in excess of 10%, while continuing to grow both sides of our balance sheet."

"The underlying reason for our success has been the continued contributions made by our staff. We have asked a lot of them and they have delivered the best service on a day-in and day-out basis. Our commitment to a true community bank philosophy of providing the best in products and service to the markets we serve remains firm," Caldwell explained.

The company’s key ratios for the year and for the fourth quarter remained strong. Return on Average Assets (ROA) for the year and for the quarter were 1.17% and 1.31%, respectively, compared to 1.22% and 1.18% a year ago. Return on Average Equity (ROE) improved to 12.08% for the year and 13.79% for the quarter compared to 11.91% and 11.77% respectively last year. The company’s efficiency ratio was 57.12% and 55.24% for the year and the quarter compared to the 58.16% and 60.13% reported for the respective year-ago periods.

Net interest income for the full year increased 14.56% from the 2001 level to a record $7,972,000. Noninterest income was up 4.29% to $1,143,000, while noninterest expense increased 9.80% during the year to $5,206,000. Provision for loan losses was increased to $300,000 during 2002, up 76.47% from the previous year.

"Although our credit quality remains strong," commented Chief Financial Officer Donald L. Stacy, "we felt it prudent to provide for the continued growth that we have seen in our loan portfolio. Our reserve level remains strong at 1.31% of total loans, while our net charge-offs decreased to only $62,000 for the year."

Book value at year-end 2002 was $18.80, an increase of 4.79% from year-end 2001’s $17.94. Cash dividends paid during the year totaled $0.74 per share. Additionally, a five percent stock dividend was paid during 2002. The comparable, adjusted cash dividend during 2001 was $0.67.

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.

Middlefield Banc Corp.

 

 

 

 

 

 

 

 

Selected Consolidated Financial Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended December 31,

 

 

 

2002

 

 

2001

 

% Change

Earnings (in 000s)

 

 

 

 

 

 

 

 

   Total interest income

 

$

3,644

 

$

3,534

 

3.11%

   Total interest expense

 

 

1,520

 

 

1,636

 

-7.12%

   Net interest income

 

 

2,124

 

 

1,898

 

11.90%

   Provision for loan losses

 

 

75

 

 

45

 

66.67%

   Net interest income after

 

 

 

 

 

 

 

 

      provision for loan losses

 

 

2,049

 

 

1,853

 

10.57%

   Total noninterest income

 

 

289

 

 

204

 

41.64%

   Total noninterest expense

 

 

1,333

 

 

1,264

 

5.46%

   Income before income taxes

 

 

1,005

 

 

793

 

26.73%

   Federal Income Taxes

 

 

264

 

 

211

 

25.12%

   Net income

 

 

741

 

 

582

 

27.27%

 

 

 

 

 

 

 

 

 

Per share (1)

 

 

 

 

 

 

 

 

   Earnings per common share - Basic

$

0.64

 

$

0.50

 

28.00%

   Earnings per common share - Diluted

 

0.64

 

 

0.50

 

28.00%

   Cash dividends paid

 

 

0.20

 

 

0.15

 

31.58%

 

 

 

 

 

 

 

 

 

Shares Outstanding

 

 

 

 

 

 

 

 

   Average - Basic

 

 

1,156,476

 

 

1,158,102

 

---

   Average - Diluted

 

 

1,159,528

 

 

1,158,565

 

---

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended December 31,

 

 

 

2002

 

 

2001

 

% Change

Key performance ratios

 

 

 

 

 

 

 

 

   Return on average assets

 

 

1.31%

 

 

1.18%

 

11.02%

   Return on average equity

 

 

13.79%

 

 

11.77%

 

17.16%

   Net interest margin

 

 

3.89%

 

 

3.94%

 

-1.27%

   Yield on earning assets

 

 

6.80%

 

 

7.51%

 

-9.45%

   Efficiency ratio

 

 

55.24%

 

 

60.13%

 

-8.13%

   Net charge-offs to average loans

 

 

 

 

 

 

 

 

      (actual for the period)

 

 

0.00%

 

 

0.01%

 

-100.00%

   Net charge-offs to average loans

 

 

 

 

 

 

 

 

      (annualized)

 

 

0.01%

 

 

0.08%

 

-87.50%

 

 

 

 

 

 

 

 

 

 

 

 

For the Twelve Months Ended December 31,

 

 

 

2002

 

 

2001

 

% Change

Earnings (in 000s)

 

 

 

 

 

 

 

 

   Total interest income

 

$

14,120

 

$

13,707

 

3.02%

   Total interest expense

 

 

6,148

 

 

6,748

 

-8.89%

   Net interest income

 

 

7,972

 

 

6,959

 

14.56%

   Provision for loan losses

 

 

300

 

 

170

 

76.47%

   Net interest income after

 

 

 

 

 

 

 

 

      provision for loan losses

 

 

7,672

 

 

6,789

 

13.01%

   Gain on sale of securities

 

 

0

 

 

98

 

-100.00%

   Total noninterest income

 

 

1,143

 

 

1,096

 

4.29%

   Total noninterest expense

 

 

5,206

 

 

4,741

 

9.80%

   Income before income taxes

 

 

3,609

 

 

3,241

 

11.34%

   Federal Income Taxes

 

 

1,108

 

 

971

 

14.13%

   Net income

 

 

2,501

 

 

2,271

 

10.14%

 

 

 

 

 

 

 

 

 

Per share (1)

 

 

 

 

 

 

 

 

   Earnings per common share - Basic

$

2.16

 

$

1.96

 

10.10%

   Earnings per common share - Diluted

 

2.16

 

 

1.96

 

10.10%

   Cash dividends paid

 

 

0.74

 

 

0.67

 

10.94%

   Book value (end of period)

 

 

18.80

 

 

17.94

 

4.79%

 

 

 

 

 

 

 

 

 

Shares Outstanding

 

 

 

 

 

 

 

 

   Average - Basic

 

 

1,157,369

 

 

1,158,102

 

---

   Average - Diluted

 

 

1,159,816

 

 

1,159,305

 

---

   Actual

 

 

1,156,546

 

 

1,102,954

 

 

 

 

 

 

 

 

 

 

 

At period end (in 000s)

 

 

 

 

 

 

 

 

   Total assets

 

$

226,246

 

$

197,858

 

14.35%

   Total deposits

 

 

187,384

 

 

167,383

 

11.95%

   Net loans receivable

 

 

172,643

 

 

150,766

 

14.51%

   Securities

 

 

42,159

 

 

31,409

 

34.23%

   Shareholders equity

 

 

21,746

 

 

19,787

 

9.90%

 

 

 

 

 

 

 

 

 

 

 

 

For the Twelve Months Ended December 31,

 

 

 

2002

 

 

2001

 

% Change

Key performance ratios

 

 

 

 

 

 

 

 

   Return on average assets

 

 

1.17%

 

 

1.22%

 

-4.10%

   Return on average equity

 

 

12.08%

 

 

11.91%

 

1.43%

   Efficiency ratio

 

 

57.12%

 

 

58.16%

 

-1.79%

   Net interest margin

 

 

4.01%

 

 

4.03%

 

-0.50%

   Yield on earning assets

 

 

7.02%

 

 

7.81%

 

-10.12%

   Net charge-offs to average loans

 

 

 

 

 

 

 

 

      (actual for the period)

 

 

0.04%

 

 

0.10%

 

-62.40%

   Total allowance for loan losses

 

 

 

 

 

 

 

 

      to nonperforming loans

 

 

107.53%

 

 

145.53%

 

---

   Nonperforming loans to

 

 

 

 

 

 

 

 

      total loans

 

 

1.31%

 

 

1.35%

 

---

   Total allowance for loan losses

 

 

 

 

 

 

 

 

      to total loans

 

 

1.31%

 

 

1.35%

 

-2.56%

   Equity to assets at period end

 

 

9.61%

 

 

10.00%

 

-3.87%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Middlefield Banc Corp.

 

 

 

 

 

 

 

 

Supplemental Detail

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31,

 

 

 

 

 

2002

 

 

2001

 

 

BALANCE SHEET  (in 000s)

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Cash and due from banks

 

$

2,347

 

$

4,684

 

 

   Federal funds sold

 

 

350

 

 

2,450

 

 

   Securities available for sale

 

 

35,917

 

 

21,180

 

 

   Held to maturity securities

 

 

6,242

 

 

10,229

 

 

         Total cash and securities

 

 

44,856

 

 

38,542

 

 

   Loans held for investment

 

 

174,943

 

 

152,828

 

 

   Loans held for sale

 

 

0

 

 

0

 

 

      Total loans

 

 

174,943

 

 

152,828

 

 

   Reserve for losses on loans

 

 

2,300

 

 

2,062

 

 

   Intangibles

 

 

0

 

 

0

 

 

   Other real estate owned

 

 

0

 

 

0

 

 

   Premises and equipment

 

 

6,481

 

 

6,245

 

 

   Other assets

 

 

2,266

 

 

2,305

 

 

      TOTAL ASSETS

 

$

226,246

 

$

197,858

 

 

 

 

 

As of December 31,

 

 

 

 

 

2002

 

 

2001

 

 

LIABILITIES

 

 

 

 

 

 

 

 

   Deposits

 

$

187,384

 

$

167,383

 

 

   Federal funds purchased

 

 

0

 

 

0

 

 

   Borrowed funds

 

 

16,476

 

 

9,962

 

 

   Other liabilities

 

 

640

 

 

726

 

 

      TOTAL LIABILITIES

 

$

204,500

 

$

178,071

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

   Common equity

 

$

22,934

 

$

21,130

 

 

   Net unrealized gain

 

 

 

 

 

 

 

 

      (loss) on securities

 

 

475

 

 

134

 

 

   Treasury stock

 

 

(1,663)

 

 

(1,476)

 

 

      TOTAL EQUITY

 

$

21,746

 

$

19,787

 

 

 

 

 

 

 

 

 

 

 

      TOTAL LIABILITIES & EQUITY

$

226,246

 

$

197,858

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Detail (continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME STATEMENT

 

 

 

 

 

 

 

 

 

 

 

For the Three Months

 

 

 

 

 

Ended December 31,

 

 

 

 

 

2002

 

 

2001

 

 

   Employee compensation and

 

 

 

 

 

 

 

 

      benefits expense

 

$

646

 

$

623

 

 

   Occupancy and equipment expense

 

165

 

 

146

 

 

   Other general, administrative and

 

 

 

 

 

 

 

 

      other expense

 

 

522

 

 

495

 

 

   Total noninterest expense

 

$

1,333

 

$

1,264

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Twelve Months

 

 

 

 

 

Ended December 31,

 

 

 

 

 

2002

 

 

2001

 

 

   Employee compensation and

 

 

 

 

 

 

 

 

      benefits expense

 

$

2,523

 

$

2,316

 

 

   Occupancy and equipment expense

 

683

 

 

584

 

 

   Other general, administrative and

 

 

 

 

 

 

 

 

      other expense

 

 

2,000

 

 

1,841

 

 

   Total noninterest expense

 

$

5,206

 

$

4,741

 

 

 

 

 

 

 

 

 

 

 

CHARGE-OFFS

 

 

 

 

 

 

 

 

 

 

 

For the Twelve Months

 

 

 

 

 

Ended December 31,

 

 

 

 

 

2002

 

 

2001

 

 

   Loan charge-offs

 

$

119

 

$

266

 

 

   Recoveries on loans

 

 

57

 

 

121

 

 

   Net loan charge-offs

 

 

62

 

 

145