EX-99 3 l05273aexv99.htm EX-99 PRESS RELEASE EX-99 Press Release
 

EXHIBIT 99

[MIDDLEFIELD BANC CORP LOGO]

15985 East High Street
   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

For Immediate Release

Middlefield Banc Corp. Reports 12% Earnings Increase for 2003

MIDDLEFIELD, OHIO, January 23, 2004 #### Middlefield Banc Corp. (Pink Sheets: MBCN) today reported net income for the fiscal year ended December 31, 2003, of $2,799,000, an increase of 11.92% over the $2,501,000 reported for 2002. Earnings per diluted share for 2003 were $2.29, which compares to 2002’s $2.06.

For the three months ended December 31, 2003, of $832,000, or $0.68 per diluted share. The fourth quarter 2003 earnings represent an increase of 12.28% over the $741,000, or $0.61 per diluted share, recorded for the quarter ended December 31, 2002.

Middlefield’s total assets ended 2003 at $262,369,000, an increase of 15.97% over the level recorded at year-end 2002 of $226,246,000. Net loans increased 10.26% to $190,359,000, while deposits grew 17.32% to $219,840,000. Stockholders’ equity at year-end 2003 was $23,504,000, an increase of 8.08% over the prior year-end.

Non-interest income for the full year showed a 29.40% increase over 2002. The primary contributing factors were increased levels of service charges and earnings on bank owned life insurance.

The increase in non-interest expense, 17.27% on a full year basis, is the result of the opening of a new banking office in Orwell, Ohio, as well as the start-up of a financial services center. An additional part of this increase was due to the implementation of an annual incentive plan applicable to all employees.

 


 

The company’s key performance ratios for the year and for the fourth quarter remained strong. Return on Average Assets (ROA) for the year and for the quarter were 1.13% and 1.26%, respectively, compared to 1.17% and 1.31% a year ago. Return on Average Equity (ROE) improved to 12.39% for the year and 14.86% for the quarter. The comparable 2002 ratios were 12.08% and 13.79%.

Thomas G. Caldwell, President and Chief Executive Officer, commented, “Recognizing all of the obstacles to net income growth that 2003 presented, we are very pleased with our results. Although we continued to experience compression of our net interest margin, we were able to grow both sides of our balance sheet, while achieving a reasonable level of earnings growth.”

“The increase in 2003 earnings following a 10.14% increase in 2002 is the result of the excellent efforts of our staff. As we continue to focus on our core business model of being a true community bank, they have stepped forward to continue to provide the best in products and service to the markets that we serve, “ continued Caldwell.

Book value at year-end 2003 was $19.21, an increase of 6.79% from the $17.98 recorded at the end of 2002. Cash dividends paid during the year totaled $0.82 per share. Additionally, a five percent stock dividend was paid during December of 2003. The comparable adjusted cash dividend during 2002 was $0.70.

Middlefield Banc Corp. is the parent company of The Middlefield Banking Company, an Ohio state-chartered bank, both of which are headquartered in Middlefield, Ohio. The Middlefield Banking Company operates six full service banking centers and a UVEST Financial Services® brokerage office serving Chardon, Garrettsville, Mantua, Middlefield, and Orwell, Ohio. For more information, please visit 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 Statements of Income
    (unaudited)
 
    For the Three Months Ended December 31,
    2003   2002   % Change
Earnings (in 000s)
                       
Total interest income
  $ 3,682     $ 3,609       2.02 %
Total interest expense
    1,393       1,509       -7.69 %
Net interest income
    2,289       2,100       9.00 %
Provision for loan losses
    0       75       -100.00 %
Net interest income after provision for loan losses
    2,289       2,025       13.04 %
Non-interest income
    470       313       50.16 %
Security (losses) gains
    0       0       0.00 %
Non-interest expense
    1,589       1,333       19.20 %
Income before income tax
    1,170       1,005       16.42 %

 


 

                         
Federal income taxes
    338       264       28.03 %
Net income
  $ 832     $ 741       12.28 %
 
Per share (1)
                       
Earning per common share - Basic
  $ 0.68     $ 0.61       11.81 %
Earning per common share - Diluted
    0.68       0.61       11.65 %
Cash dividends paid
    0.21       0.19       10.25 %
 
Shares Outstanding
                       
Basic
    1,219,449       1,214,300       0.42 %
Diluted
    1,223,652       1,216,811       0.56 %
 
Key performance ratios
                       
Return on average assets (ROA)
    1.26 %     1.31 %     -3.82 %
Return on average equity (ROE)
    14.86 %     13.79 %     7.76 %
Net interest margin
    3.96 %     3.96 %     0.00 %
Yield on earning assets
    6.25 %     6.72 %     -6.99 %
Efficiency ratio
    56.42 %     55.24 %     2.14 %
Net charge-offs to average loans (actual for the period)
    0.04 %     0.00 %     N/A  
Net charge-offs to average loans (annualized)
    0.18 %     0.01 %     1700.00 %
                         
    Middlefield Banc Corp.
    Consolidated Statements of Income
      (unaudited)
 
    For the Twelve Months Ended December 31,
    2003   2002   % Change
Earnings (in 000s)
                       
Total interest income
  $ 14,596     $ 14,120       3.37 %
Total interest expense
    5,725       6,148       -6.88 %
Net interest income
    8,871       7,972       11.28 %
Provision for loan losses
    315       300       5.00 %
Net interest income after
                       
provision for loan losses
    8,556       7,672       11.52 %
Non-interest income
    1,479       1,143       29.40 %
Security (losses) gains
    1       0       N/A  
Non-interest expense
    6,105       5,206       17.27 %
Income before income tax
    3,931       3,609       8.92 %
Federal income taxes
    1,132       1,108       2.17 %
Net income
  $ 2,799     $ 2,501       11.92 %
 
Per share (1)
                       
Earning per common share - Basic
  $ 2.29     $ 2.06       11.32 %
Earning per common share - Diluted
    2.29       2.06       11.27 %
Cash dividends paid
    0.82       0.70       17.14 %
Book Value (end of period)
    19.21       17.98       6.79 %
 
Shares Outstanding
                       
Basic
    1,219,476       1,215,237       0.35 %
Diluted
    1,222,829       1,217,231       0.46 %

 


 

                         
At period end (in 000s)
                       
Total Assets
  $ 262,369     $ 226,246       15.97 %
Total deposits
    219,840       187,384       17.32 %
Net loans receivable
    190,359       172,643       10.26 %
Securities
    51,825       42,159       22.93 %
Sharholders equity
    23,504       21,746       8.08 %
 
Key performance ratios
                       
Return on average assets (ROA)
    1.13 %     1.17 %     -3.42 %
Return on average equity (ROE)
    12.39 %     12.08 %     2.57 %
Net interest margin
    3.87 %     3.99 %     -3.01 %
Yield on earning assets
    6.30 %     6.99 %     -9.87 %
Efficiency ratio
    58.98 %     57.12 %     3.26 %
Net charge-offs to average loans
    0.05 %     0.04 %     25.00 %
Total allowance for loan losses to nonperforming loans
    495.28 %     427.51 %     15.85 %
Nonperforming loans to total loans
    0.27 %     0.31 %     -12.90 %
Total allowance for loan losses to total loans
    1.31 %     1.31 %     -0.23 %
Equity to assets at period end
    8.96 %     9.61 %     -6.78 %

(1)   Per share data has been restated to reflect the five per cent stock dividend paid in 2003

                 
    Middlefield Banc Corp.
    Consolidated Balance Sheet
    As of December 31,
    2003   2002
ASSETS
               
Cash and due from banks
  $ 4,496     $ 2,347  
Federal funds sold
    930       350  
Securities available for sale
    49,966       35,917  
Securities held to maturity
    1,859       6,242  
 
               
Total cash and securities
    57,251       44,856  
Loans
    192,880       174,943  
Less: reserve for loan losses
    2,521       2,300  
 
               
Loans, net
    190,359       172,643  
Premises and equipment
    6,808       6,481  
Bank-owned life insurance
    5,202       0  
Accrued interest receivable and other assets
    2,749       2,266  
 
               
TOTAL ASSETS
  $ 262,369     $ 226,246  
 
               
                 
    As of December 31,
    2003   2002
LIABILITIES
               
Deposits
  $ 219,840     $ 187,384  
Borrowed funds
    18,110       16,476  
Other liabilities
    915       640  
 
               
TOTAL LIABILITIES
    238,865       204,500  
 
               
 
EQUITY
               
Common equity
    25,124       22,934  
Net Unrealized gain (loss) on securities
    125       475  

 


 

                 
Treasury stock
    (1,745 )     (1,663 )
 
               
TOTAL EQUITY
    23,504       21,746  
 
               
 
TOTAL LIABILITIES & EQUITY
  $ 262,369     $ 226,246