EX-99.1 2 l28415aexv99w1.htm EX-99.1 EX-99.1
 

EXHIBIT 99.1
(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
Middlefield Banc Corp. Reports Third Quarter 2007 Earnings
MIDDLEFIELD, OHIO, October 23, 2007 ¨¨¨¨ 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 UVEST Financial Services® 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)  
    September 30,     December 31,     September 30,  
Balance Sheet (period end)   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 (estimated market value of $120,545, $134,306 and $225,604)
     120       126       216  
Loans:
     307,026       249,191       244,852  
Less: reserve for loan losses
     3,112       2,849       3,049  
 
                  

 

 

                         
    (unaudited)             (unaudited)  
    September 30,     December 31,     September 30,  
Balance Sheet (period end)   2007     2006     2006  
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  

 

 

                                 
    For the Three Months Ended     For the Nine Months Ended  
    September 30,     September 30,  
    2007     2006     2007     2006  
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  

 

 

                 
    September 30,     September 30,  
Asset quality data   2007     2006  
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 %