Exhibit 99
15985 East High Street
P. O. Box 35
Middlefield, Ohio 44062
Phone: 440/632-1666 FAX: 440/632-1700
www.middlefieldbank.com
P. O. Box 35
Middlefield, Ohio 44062
Phone: 440/632-1666 FAX: 440/632-1700
www.middlefieldbank.com
PRESS RELEASE
| Contact: | James R. Heslop, 2nd Executive Vice President/Chief Operating Officer (440) 632-1666 Ext. 3219 jheslop@middlefieldbank.com |
Middlefield Banc Corp. Reports Second Quarter 2011 Results
MIDDLEFIELD, OHIO, August 4, 2011 ¨ ¨ ¨ ¨ Middlefield Banc Corp. (OTCQB:
MBCN) today announced results for the second quarter of 2011. Net income totaled $720,000 for the
quarter ended June 30, 2011, representing earnings per diluted share of $0.44. In comparison,
earnings per diluted share were $0.45, on net income of $715,000, for the second quarter of 2010.
Net income for the first six months of 2011 was $1,722,000 or $1.10 per diluted share. For the
same period of 2010, net income of $1,360,000 equated to $0.87 per diluted share.
Annualized returns on average equity (“ROE”) and average assets (“ROA”) for the 2011 second quarter
were 7.22% and 0.45%, respectively, compared with 7.48% and 0.47% for the second quarter of 2010.
ROE and ROA were 8.89% and 0.55%, respectively, for the six month period of 2011. Comparable
results for the 2010 six month period were 7.27% and 0.46%, respectively.
“We are pleased with our earnings position for the second quarter of 2011,” stated Thomas G.
Caldwell, President and Chief Executive Officer, “This is especially true as we seek to navigate
through a very uncertain economic environment.”
“We remain cautiously optimistic that a transition in that environment will begin near the end of
2011. We will continue to remain firmly focused on delivering excellent customer service,
increasing value to our shareholders, and operating our company under safe and sound banking
principles,” Caldwell concluded.
For the second quarter of 2011, net interest income increased $531,000, or 11.6% from the same
period last year. A decrease of $369,000 in interest on deposits was the leading factor in this
improvement. Similarly, for the first six months of 2011, net interest income was $1,494,000 above
the figure reported for the 2010 first half. An increase of $524,000 in interest income coupled
with a decrease in interest expense of $970,000 were the components of the shift.
The net interest margin for the three months ended June 30, 2011 was 3.64% compared to 3.49% for
the same period of 2010. For the six month periods, the net interest margin for 2011 was 3.66%,
with 2010 being 3.39%.
“Our net interest margin continues to show positive movement,” commented Donald L. Stacy, Chief
Financial Officer. “However, the challenges relative to consistent net interest margin improvement
are far
from over. The Fed’s policy of maintaining a continued low rate environment has led to aggressive
pricing on the part of many of our competitors.”
For the three months ended June 30, 2011, management added $700,000 to the allowance for loan
losses, being only a slight increase from the $690,000 recorded for the same period the prior year.
The comparable six months figures are $1,565,000 for 2011 and $1,129,000 for 2010. The increased
loan loss provision on a year-to-date basis for 2011 was related to a higher level of charge-offs
and an increase in the general allocation for loan losses. Net charge-offs for 2011 were $759,000,
or 0.20% of average loans. The allowance for loan losses at June 30, 2011 stood at $7,027,000, or
1.82% of total loans. At June 30, 2010, the allowance for loan losses was $5,834,000, representing
1.60% of total loans.
Noninterest income for the second quarter of 2011 was $594,000, and continues to be tempered by
certain regulatory changes including those mandated by the Dodd-Frank Act. The first half of 2011
saw the company report noninterest income of $1,293,000, down only $1,000 from the prior year.
Noninterest expense for the second quarter of 2011 totaled $4,292,000, an increase of $464,000,
from the same period last year. The two largest components of this increase were salaries and
benefits, which was up $231,000, and loss on the sale of other real estate owned of $230,000. The
increased employee costs reflect increased headcounts, primarily related to special
assets/collections, credit analysis, and regulatory compliance. For the first half of 2011, total
noninterest expense of $7,997,000 was $611,000 above the 2010 comparable period.
Balance Sheet Growth
The company’s total assets as of June 30, 2011 stood at $639.6 million, an increase of 1.2% over
the $632.2 million in total assets reported at December 31, 2010. Net loans at June 30, 2011, were
$378.3 million, up $12.0 million, or 3.3%, over the $366.3 million reported at December 31, 2010.
Total deposits at the end of the second quarter 2011 were $569.7 million or 0.8% greater than the
deposit level of $566.3 million at December 31, 2010. Stockholders’ equity at June 30, 2011, was
$42.3 million. Book value per share as of June 30, 2011, was $25.58.
Dividends
During the second quarter of both 2011 and 2010, Middlefield paid cash dividends of $0.26 per
share.
Middlefield Banc Corp. headquartered in Middlefield, Ohio is a multi-bank holding company with
total assets of $639.6 million. The company’s lead bank, The Middlefield Banking Company, operates
full service banking centers and a UVEST Financial Services® brokerage office serving Chardon,
Cortland, Garrettsville, Mantua, Middlefield, Newbury, and Orwell. The company also serves the
central Ohio market through its Emerald Bank subsidiary, with offices in Dublin and Westerville,
Ohio. Additional information is available at www.middlefieldbank.com and www.emeraldbank.com
This press release of Middlefield Banc Corp. and the reports Middlefield Banc Corp. files with
the Securities and Exchange Commission often contain “forward-looking statements” relating to
present or future trends or factors affecting the banking industry and, specifically, the financial
operations, markets and products of Middlefield Banc Corp. These forward-looking statements
involve certain risks and uncertainties. There are a number of important factors that could cause
Middlefield Banc Corp.’s future results to differ materially from historical performance or
projected performance. These factors include, but are not limited to: (1) a significant increase
in competitive pressures among financial institutions; (2) changes in the interest rate environment
that may reduce interest margins; (3) changes in prepayment speeds, charge-offs and loan loss
provisions; (4) less favorable than expected general economic conditions; (5) legislative or
regulatory changes that may adversely affect businesses in which Middlefield Banc Corp. is engaged;
(6) technological issues which may adversely affect Middlefield Banc Corp.’s financial operations
or customers; (7) changes in the securities markets; or (8) risk factors mentioned in the reports
and registration statements Middlefield Banc Corp. files with the Securities and Exchange
Commission. Middlefield Banc Corp. undertakes no
obligation to release revisions to these forward-looking statements or to reflect events or
circumstances after the date of this press release.
MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
Consolidated Selected Financial Highlights
June 30, 2011 and 2010 and December 31, 2010
| (unaudited) | (unaudited) | |||||||||||
| Balance Sheet (period end) | June 30, | December 31, | June 30, | |||||||||
| (Dollar amounts in thousands) | 2011 | 2010 | 2010 | |||||||||
Assets |
||||||||||||
Cash and due from banks |
$ | 15,540 | $ | 10,473 | $ | 15,065 | ||||||
Federal funds sold |
19,364 | 20,162 | 22,152 | |||||||||
Interest-bearing deposits in other
institutions |
— | — | 124 | |||||||||
Cash and cash equivalents |
34,904 | 30,635 | 37,341 | |||||||||
Investment securities available for sale |
193,821 | 201,772 | 178,963 | |||||||||
Loans: |
385,339 | 372,498 | 364,762 | |||||||||
Less: reserve for loan losses |
7,027 | 6,221 | 5,834 | |||||||||
Net loans |
378,312 | 366,277 | 358,928 | |||||||||
Premises and equipment |
7,939 | 8,179 | 8,360 | |||||||||
Goodwill |
4,559 | 4,559 | 4,559 | |||||||||
Bank-owned life insurance |
8,118 | 7,979 | 7,839 | |||||||||
Accrued interest receivable and other
assets |
11,921 | 12,796 | 10,949 | |||||||||
Total Assets |
$ | 639,574 | $ | 632,197 | $ | 606,939 | ||||||
| June 30, | December 31, | June 30, | ||||||||||
| 2011 | 2010 | 2010 | ||||||||||
Liabilities and Stockholders’ Equity |
||||||||||||
Non-interest bearing demand deposits |
$ | 58,219 | $ | 53,391 | $ | 51,118 | ||||||
Interest bearing demand deposits |
55,315 | 48,869 | 40,055 | |||||||||
Money market accounts |
74,482 | 71,105 | 65,275 | |||||||||
Savings deposits |
160,141 | 146,993 | 131,818 | |||||||||
Time deposits |
221,588 | 244,893 | 244,829 | |||||||||
Total Deposits |
569,745 | 565,251 | 533,095 | |||||||||
Short-term borrowings |
6,787 | 7,632 | 7,201 | |||||||||
Other borrowings |
18,694 | 19,321 | 25,040 | |||||||||
Accrued interest and other liabilities |
2,045 | 1,971 | 1,995 | |||||||||
Total Liabilities |
597,271 | 594,175 | 567,331 | |||||||||
Common equity |
29,485 | 28,429 | 28,201 | |||||||||
Retained earnings |
16,712 | 15,840 | 15,504 | |||||||||
Accumulated other comprehensive income |
2,840 | 487 | 2,637 | |||||||||
Treasury stock |
(6,734 | ) | (6,734 | ) | (6,734 | ) | ||||||
Total Stockholders’ Equity |
42,303 | 38,022 | 39,608 | |||||||||
Total Liabilities and Stockholders’
Equity |
$ | 639,574 | $ | 632,197 | $ | 606,939 | ||||||
MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
June 30, 2011 and 2010
(Dollar amounts in thousands)
(unaudited)
Consolidated Selected Financial Highlights
June 30, 2011 and 2010
(Dollar amounts in thousands)
(unaudited)
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
INTEREST INCOME |
||||||||||||||||
Interest and fees on loans |
$ | 5,399 | $ | 5,299 | $ | 10,700 | $ | 10,396 | ||||||||
Interest-bearing deposits in other
institutions |
2 | 3 | 4 | 7 | ||||||||||||
Federal funds sold |
4 | 12 | 13 | 23 | ||||||||||||
Investment securities |
||||||||||||||||
Taxable interest |
1,289 | 1,339 | 2,612 | 2,542 | ||||||||||||
Tax-exempt interest |
702 | 647 | 1,400 | 1,239 | ||||||||||||
Dividends on FHLB Stock |
25 | 32 | 51 | 49 | ||||||||||||
Total interest income |
7,421 | 7,332 | 14,780 | 14,256 | ||||||||||||
INTEREST EXPENSE |
||||||||||||||||
Deposits |
2,004 | 2,373 | 4,041 | 4,858 | ||||||||||||
Short term borrowings |
59 | 62 | 118 | 120 | ||||||||||||
Other borrowings |
104 | 183 | 213 | 373 | ||||||||||||
Trust preferred securities |
137 | 128 | 273 | 264 | ||||||||||||
Total interest expense |
2,304 | 2,746 | 4,645 | 5,615 | ||||||||||||
NET INTEREST INCOME |
5,117 | 4,586 | 10,135 | 8,641 | ||||||||||||
Provision for loan losses |
700 | 690 | 1,565 | 1,129 | ||||||||||||
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES |
4,417 | 3,896 | 8,570 | 7,512 | ||||||||||||
NONINTEREST INCOME |
||||||||||||||||
Service charges on deposits |
416 | 433 | 844 | 848 | ||||||||||||
Earnings on bank-owned life insurance |
66 | 65 | 139 | 132 | ||||||||||||
Other income |
149 | 169 | 332 | 287 | ||||||||||||
Net securities gains (losses) |
(37 | ) | 18 | (22 | ) | 27 | ||||||||||
Total non-interest income |
594 | 685 | 1,293 | 1,294 | ||||||||||||
NONINTEREST EXPENSE |
||||||||||||||||
Salaries and employee benefits |
1,944 | 1,713 | 3,634 | 3,224 | ||||||||||||
Occupancy expense |
223 | 217 | 495 | 493 | ||||||||||||
Equipment expense |
155 | 204 | 313 | 402 | ||||||||||||
Data processing costs |
173 | 172 | 353 | 415 | ||||||||||||
Ohio state franchise tax |
97 | 134 | 225 | 270 | ||||||||||||
FDIC assessment |
272 | 190 | 497 | 392 | ||||||||||||
Professional fees |
185 | 188 | 396 | 380 | ||||||||||||
Loss on sale of other real estate owned |
323 | 93 | 303 | 214 | ||||||||||||
Other operating expense |
920 | 917 | 1,781 | 1,596 | ||||||||||||
Total non-interest expense |
4,292 | 3,828 | 7,997 | 7,386 | ||||||||||||
Income before income taxes |
719 | 753 | 1,866 | 1,420 | ||||||||||||
Provision for income taxes |
(1 | ) | 38 | 144 | 60 | |||||||||||
NET INCOME |
$ | 720 | $ | 715 | $ | 1,722 | $ | 1,360 | ||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
Per common share data |
||||||||||||||||
Net income per common share — basic |
$ | 0.44 | $ | 0.46 | $ | 1.10 | $ | 0.87 | ||||||||
Net income per common share — diluted |
$ | 0.44 | $ | 0.45 | $ | 1.10 | $ | 0.87 | ||||||||
Dividends declared |
$ | 0.26 | $ | 0.26 | $ | 0.52 | $ | 0.52 | ||||||||
Book value per share(period end) |
$ | 25.58 | $ | 25.10 | $ | 25.58 | $ | 25.10 | ||||||||
Tangible book value per share
(period end) |
$ | 22.82 | $ | 22.21 | $ | 22.82 | $ | 22.21 | ||||||||
Dividend payout ratio |
56.94 | % | 57.06 | % | 49.36 | % | 60.00 | % | ||||||||
Average shares outstanding — basic |
1,647,771 | 1,570,852 | 1,568,168 | 1,568,168 | ||||||||||||
Average shares outstanding -diluted |
1,647,920 | 1,572,084 | 1,568,243 | 1,569,742 | ||||||||||||
Period ending shares outstanding |
1,653,660 | 1,577,771 | 1,653,660 | 1,577,771 | ||||||||||||
Selected ratios |
||||||||||||||||
Return on average assets |
0.45 | % | 0.47 | % | 0.55 | % | 0.46 | % | ||||||||
Return on average equity |
7.22 | % | 7.48 | % | 8.89 | % | 7.27 | % | ||||||||
Yield on earning assets |
5.17 | % | 5.44 | % | 5.23 | % | 5.44 | % | ||||||||
Cost of interest bearing liabilities |
1.71 | % | 2.15 | % | 1.74 | % | 2.25 | % | ||||||||
Net interest spread |
3.36 | % | 3.29 | % | 3.49 | % | 3.19 | % | ||||||||
Net interest margin |
3.64 | % | 3.49 | % | 3.66 | % | 3.39 | % | ||||||||
Efficiency (1) |
70.68 | % | 68.30 | % | 65.82 | % | 69.86 | % | ||||||||
Equity to assets at period end |
6.61 | % | 6.53 | % | 6.61 | % | 6.53 | % | ||||||||
| (1) | The efficiency ratio is calculated by dividing non-interest expense less amortization of intangibles by the sum of net interest income on a fully taxable equivalent basis plus non-interest income. |
| June 30, | June 30, | |||||||
| Asset quality data | 2011 | 2010 | ||||||
| (Dollar amounts in thousands) | ||||||||
Non-accrual loans |
$ | 19,155 | $ | 19,817 | ||||
Troubled debt restructuring |
3,198 | — | ||||||
90 days past due and accruing |
116 | 236 | ||||||
Non-performing loans |
22,469 | 20,053 | ||||||
Other real estate owned |
2,145 | 1,886 | ||||||
Non-performing assets |
$ | 24,614 | $ | 21,939 | ||||
Allowance for loan losses |
$ | 7,027 | $ | 5,834 | ||||
Allowance for loan losses/total loans |
1.82 | % | 1.60 | % | ||||
Net charge-offs: |
||||||||
Quarter-to-date |
$ | 358 | $ | 135 | ||||
Year-to-date |
759 | 232 | ||||||
Net charge-offs to average loans |
||||||||
Quarter-to-date |
0.09 | % | 0.04 | % | ||||
Year-to-date |
0.20 | % | 0.06 | % | ||||
Non-performing loans/total loans |
5.83 | % | 5.50 | % | ||||
Allowance for loan losses/non-performing loans |
31.27 | % | 29.09 | % | ||||