The Middlefield Banking Company

The Middlefield Banking Company

 

Middlefield Banc Corp. 2007 Press Releases

Middlefield Banc Corp. Reports Third Quarter 2007 Earnings

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Contact Info:

James R. Heslop, 2nd
Middlefield Banc Corp.
Executive Vice President/Chief Operating Officer
(440) 632-1666 Ext. 3219
Date: October 23, 2007

MIDDLEFIELD, OHIO Middlefield Banc Corp. (Middlefield) (Pink Sheets:  MBCN) reported consolidated net income for the quarter ended September 30, 2007, of $861,000, 7.5% less than the $931,000 reported for the same period in 2006.  Diluted earnings per share for the third quarter of 2007 were $0.56, a 12.5% decrease from 2006's third quarter diluted earnings per share of $0.64.  The return on average assets and the return on average equity for the third quarter of 2007 were 0.83% and 10.06%, respectively.  The comparable results for the same period of 2006 were 1.16% and 12.84%, respectively.

Operating results for the first three quarters of 2007, which ended September 30, 2007, reflected net income of $2,512,000, an 8.2% decrease compared to $2,736,000 for the first nine months of 2006.  Diluted earnings per share for the first three quarters of 2007 were $1.68, which was 11.6% less than the diluted earnings per share of $1.90 for the first nine months in 2006.  The figures for 2007, both for the quarter and year-to-date periods, included results of operations of Emerald Bank, a Dublin, Ohio-based affiliate that joined Middlefield on April 19, 2007.

Net interest income for the quarter ended September 30, 2007, was $2,907,000, an increase of 5.4% from $2,758,000 for the same period in 2006.  Net interest income was impacted by both an increase in the yields on earning assets and an increase in the cost of funds.  Noninterest income for the third quarter of 2007 was relatively flat at $464,000, which was $10,000 higher than the $454,000 reported for the third quarter of 2006.  Noninterest expense for the quarter ended September 30, 2007, was $2,417,000, an increase of 18.3% from the 2006 comparable period, which reported $2,042,000.  The increase in noninterst expense was primarily attributable to the expansion efforts of Middlefield.  The 2007 figures include the earlier reported opening of the Newbury banking office, the opening of a loan production office in Cortland, and the addition of Emerald Bank.  These three actions led to higher expenses for salaries and benefits, occupancy, equipment, and data processing.  Additionally, on August 1, 2007, Middlefield, through its subsidiary, The Middlefield Banking Company, acquired certain deposit of another Geauga County, Ohio financial institution.

Total assets increased to $423,492,000 as of September 30, 2007, from $340,852,000 at December 31, 2006.  Total securities were $81,487,000 as of September 30, 2007, compared to $63,174,000 at December 31, 2006.  Loans, net of the allowance for loan losses increased $57,572,000, or 23.4% to $303,914,000 as of September 30, 2007, compared to $246,342,000 at December 31, 2006.  As of the September 30, 2007 reporting date, total deposits of $352,750,000 increased $81,700,000, or 30.14%, from the $271,050,000 reported as of December 31, 2006.

Stockholders' equity increased from $30,464,000 at December 31, 2006 to $34,846,000 at September 30, 2007, an increase of 14.38%.  Book value per share at September 30, 2007 was $23.21, which compares to $20.30 per share at year-end 2006.  During the third quarter of 2007, Middlefield paid a cash dividend per share of $0.245, an increase of 7.0% from the $0.229 per share paid during the third quarter of 2006. 

Middlefield Banc Corp. is a financial holding company headquartered in Middlefield, Ohio.  Its subsidiary, The Middlefield Banking Company, operates full service banking centers and a LPL Financial¨ brokerage office serving Chardon, Garrettsville, Mantua, Middlefield, Newbury, and Orwell, as well as a loan production office in Cortland, Ohio.  On April 19, 2007, Middlefield Banc Corp. completed its acquisition of Emerald Bank, headquartered in Dublin, Ohio.  Further information is available at www.middlefieldbank.com

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.
Consolidated Selected Financial Highlights
(dollars in thousands, except per share amounts)
                 
September 30, 2007 and 2006 and December 31, 2006
    (unaudited)           (unaudited)
Balance Sheet (period end)   September 30,     December 31,     September 30,
    2007     2006     2006
Assets                
Cash and due from banks $   7,732    $   6,893    $   5,217
Federal funds sold     4,525       6,200       5,440
Interest-bearing deposits in other institutions     565       546       538
  Cash and cash equivalents     12,822       13,639       11,195
Investment securities available for sale     81,367       63,048       55,026
Investment securities held to maturity     120       126       216
  (estimated market value of  $120,545,              
  $134,306 and $225,604 )
Loans:     307,026       249,191       244,852
Less:  reserve for loan losses     3,112       2,849       3,049
  Net loans     303,914       246,342       241,803
Premises and equipment     6,996       6,742       6,570
Goodwill     5,439       123        -
Bank-owned life insurance     7,083       6,873       6,811
Accrued interest receivable and other assets     5,751       3,959       4,054
Total Assets $ 423,492   $ 340,852   $ 325,675
                 
  
    September 30,     December 31,   September 30,
    2007     2006     2006
Liabilities and Stockholders' Equity                
Non-interest bearing demand deposits $ 42,110   $ 41,003   $ 40,490
Interest bearing demand deposits   20,295     11,724     12,613
Money market accounts   24,407     14,739     14,908
Savings deposits   79,468     54,246     57,242
Time deposits   186,470     149,338     139,452
  Total Deposits   352,750     271,050     264,705
Short-term borrowings   2,513     1,610     1,309
Other borrowings   31,102     36,113     28,690
Other liabilities   2,281     1,615     1,404
  Total Liabilities   388,646     310,388     296,108
                 
Common equity   39,770     34,193     33,242
Net Unrealized gain (loss) on securities   (632)     (521)     (467)
Treasury stock   (4,292)     (3,208)     (3,208)
  Total Stockholders' Equity   34,846     30,464     29,567
                 
Total Liabilities and Stockholders' Equity $ 423,492   $ 340,852   $ 325,675
                 
                 

 

MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
September 30, 2007 and 2006
(unaudited, dollars in thousands, except per share amounts)
                       
  For the Three
Months Ended
  For the Nine
Months Ended
  September 30,   September 30,
    2007     2006     2007     2006
INTEREST INCOME                      
  Interest and fees on loans $ 5,604   $ 4,394   $ 15,450   $ 12,599
  Interest-bearing deposits in other institutions   22     5     128     12
  Federal funds sold   122     29     383     38
  Investment securities                      
  Taxable interest   324     275     844     871
  Tax-exempt interest   469     252     1,311     745
  Dividends on FHLB Stock   32     21     85     62
  Total interest income   6,573     4,976     18,201     14,327
INTEREST EXPENSE                      
  Deposits   3,177     1,867     8,361     5,086
  Short term borrowings   36     23     75     145
  Other borrowings   453     328     1,369     899
  Total interest expense   3,666     2,218     9,805     6,130
NET INTEREST INCOME   2,907     2,758     8,396     8,197
Provision for loan losses   60     90     175     240
NET INTEREST INCOME AFTER PROVISION                      
  FOR LOAN LOSSES   2,847     2,668     8,221     7,957
NONINTEREST INCOME                      
  Service charges on deposits   494     462     1,427     1,311
  Earnings on bank-owned life insurance   70     65     210     178
  Other income   90     117     286     306
  Net securities gains (losses)   0     0     0     (6)
  Total non-interest income   654     644     1,923     1,789
NONINTEREST EXPENSE                      
  Salaries and employee benefits   1,221     1,010     3,366     2,840
  Occupancy expense   184     117     552     385
  Equipment expense   139     108     393     301
  Data processing costs   186     148     499     484
  Ohio state franchise tax   86     90     290     270
  Other operating expense   601     569     1,911     1,696
  Total non-interest expense   2,417     2,042     7,011     5,976
Income before income taxes   1,084     1,270     3,133     3,770
Provision for income taxes   223     339     621     1,034
NET INCOME $ 861   $ 931   $ 2,512   $ 2,736
                       
Per common share data                      
Net income per common share - basic $ 0.57   $ 0.65   $ 1.70   $ 1.92
Net income per common share - diluted $ 0.56   $ 0.64   $ 1.68   $ 1.90
Dividends declared $ 0.245   $ 0.229   $ 0.725   $ 0.686
Book value per share(period end) $ 23.21   $ 21.36   $ 23.21   $ 21.36
Dividend payout ratio   42.98%     35.23%     42.65%     35.73%
Average shares outstanding - basic   1,509,738     1,424,002     1,479,970     1,421,768
Average shares outstanding -diluted   1,527,444     1,446,336     1,499,798     1,443,813
Period ending shares outstanding   1,501,283     1,425,893     1,501,283     1,425,893
                       
Selected ratios                      
Return on average assets   0.83%     1.16%     0.87%     1.16%
Return on average equity   10.06%     12.84%     10.16%     12.98%
Yield on earning assets   6.81%     6.67%     6.84%     6.59%
Cost of interest bearing liabilities   4.28%     3.52%     4.20%     3.33%
Net interest spread   2.53%     3.15%     2.64%     3.26%
Net interest margin   3.15%     3.78%     3.29%     3.84%
Efficiency   63.57%     58.71%     63.76%     58.99%
Equity to assets at period end   8.23%     9.08%     8.23%     9.08%
                       
                       
 

    September 30,     September 30,
Asset quality data   2007     2006
           
Non-accrual loans $ 2,103   $ 1,682
Restructured loans   1,689     16
Non-performing loans   3,792     1,698
Other real estate owned     -       -
Non-performing assets $ 3,792   $ 1,698
           
           
Allowance for loan losses $ 3,112   $ 3,049
Allowance for loan losses/total loans   1.01%     1.25%
Net charge-offs:          
  Quarter-to-date $ 231   $ (6)
  Year-to-date   347     32
Net charge-offs to average loans          
  Quarter-to-date   0.08%     0.00%
  Year-to-date   0.12%     0.01%
Non-performing loans/total loans   1.24%     0.69%
Allowance for loan losses/non-performing loans   82.07%     179.61%
           
The Middlefield Banking Company, Member FDICEqual Housing Lender 
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