|
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
|
|
|
|
