Attached files
| file | filename |
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| 8-K - FORM 8-K - MIDDLEFIELD BANC CORP | c16820e8vk.htm |
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 Strong Earnings Increase for First Quarter
MIDDLEFIELD, OHIO, May 5, 2011 •••• Middlefield Banc Corp. (OTCQB: MBCN),
reported net income of $1.002 million for the quarter ended March 31, 2011, compared to $645,000
for the quarter ended March 31, 2010, an increase of 55.3%. On a per share basis, the Company’s
diluted earnings were $0.62 for the 2011 first quarter, as compared to $0.41 for the comparable
period of 2010.
Annualized returns on average equity (“ROE”) and average assets (“ROA”) for the 2011 quarter were
10.50% and 0.63%, respectively, compared with 7.06% and 0.45% for the first quarter of 2010.
For the first quarter of 2011, net interest income increased $963,000, or 23.7% from the same
period last year. The increase was nearly equally attributable to an increase in interest income
and a decrease in interest expense. Comparing the first quarter of 2011 to the first quarter of
2010, interest income increased $435,000, or 6.3%. For the same period, interest expense decreased
$528,000, a change of 18.4%. The net interest margin for the three months ended March 31, 2011 was
3.68%, compared to 3.29% for the same period of the prior year.
For the three months ended March 31, 2011, management provided $865,000 to the allowance for loan
losses, an increase of $426,000 from the same period the prior year. The higher provision was
related to a higher level of charge-offs and for an increase in the general allocation for loan
losses. Net charge-offs for the 2011 first quarter were $401,000, or 0.11% of average loans. The
allowance for loan losses at March 31, 2011 stood at $6.685 million, or 1.78% of total loans. At
March 31, 2010, the allowance for loan losses was $5.279 million, representing 1.47% of total
loans. Based on the evaluation of the adequacy of the allowance for loan losses, management
believes that, at March 31, 2011, the allowance for loan losses was adequate and reflects probable
losses in the loan portfolio.
Noninterest income for the first quarter of 2011 was $699,000. This was a modest increase of 14.8%
from the comparable period of 2010. The primary factors in this increase were higher revenues from
investment services and fees generated by increased debit card usage. Although deposit service
charges increased year-over-year, the growth was tempered by rules eliminating certain automatic
overdraft protection arrangements and the ability to charge fees for the payment of overdrafts for
debit and ATM card transactions.
Noninterest expense for the first quarter of 2011 totaled $3.705 million, an increase of $147,000,
or 4.13% from the same period last year. Salaries and benefits, the company’s largest noninterest
expense, contributed $179,000 to the increase. This increase is largely related to the growth of
the company, including increased staffing levels in special assets/collections and credit analysis.
Expenses related to the collection of delinquent loans and the management of Other Real Estate
increased $40,000 from 2010’s first quarter. The limited growth in non-interest expense reflects
management’s on-going efforts to control expenses.
“We are pleased to report strong year over year earnings for the first quarter of 2011,” stated
Thomas G. Caldwell, President and Chief Executive Officer, “We enjoyed positive growth in net
interest income as we have continued to maintain our focus on managing our non-interest expenses.”
“In a broad sense, we are cautiously optimistic that a transition to better economic times will
begin in 2011. As we work through that interim period, our focus remains keen on delivering
excellence in customer service, increasing value to our shareholders, and operating our company in
accordance with safe and sound banking practices,” Caldwell concluded.
Balance Sheet Growth
The company’s total assets as of March 31, 2011 stood at $635.8 million, an increase of 0.6% over
the $632.2 million in total assets reported at December 31, 2010. Net loans at March 31, 2011,
were $369.8 million, up $3.6 million, or 1.0%, over the $366.3 million reported at December 31,
2010. Total deposits at the end of the first quarter 2011 were $568.6 million, or 0.6% greater
than the deposit level of $566.3 million at December 31, 2010. Stockholders’ equity at March 31,
2011, was $39.3 million. Book value per share as of March 31, 2011, was $23.86.
Dividends
During the first 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 $635.8 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
March 31, 2011 and 2010 and December 31, 2010
| Balance Sheet (period end) | ||||||||||||
| (Dollar amounts in thousands) | March 31, | December 31, | March 31, | |||||||||
| (unaudited) | 2011 | 2010 | 2010 | |||||||||
Assets |
||||||||||||
Cash and due from banks |
$ | 11,555 | $ | 10,473 | $ | 13,039 | ||||||
Federal funds sold |
30,581 | 20,162 | 28,492 | |||||||||
Interest-bearing deposits in other institutions |
— | — | 123 | |||||||||
Cash and cash equivalents |
42,136 | 30,635 | 41,654 | |||||||||
Investment securities available for sale |
189,640 | 201,772 | 164,852 | |||||||||
Loans: |
376,529 | 372,498 | 359,651 | |||||||||
Less: reserve for loan losses |
6,685 | 6,221 | 5,279 | |||||||||
Net loans |
369,844 | 366,277 | 354,372 | |||||||||
Premises and equipment |
8,053 | 8,179 | 8,408 | |||||||||
Goodwill |
4,559 | 4,559 | 4,559 | |||||||||
Bank-owned life insurance |
8,052 | 7,979 | 7,773 | |||||||||
Accrued interest receivable and other assets |
13,553 | 12,796 | 12,399 | |||||||||
Total Assets |
$ | 635,837 | $ | 632,197 | $ | 594,017 | ||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2011 | 2010 | 2010 | ||||||||||
Liabilities and Stockholders’ Equity |
||||||||||||
Non-interest bearing demand deposits |
$ | 52,831 | $ | 53,391 | $ | 44,082 | ||||||
Interest bearing demand deposits |
54,371 | 48,869 | 41,959 | |||||||||
Money market accounts |
75,046 | 71,105 | 64,808 | |||||||||
Savings deposits |
155,945 | 146,993 | 120,544 | |||||||||
Time deposits |
230,411 | 244,893 | 250,885 | |||||||||
Total Deposits |
568,604 | 565,251 | 522,278 | |||||||||
Short-term borrowings |
7,301 | 7,632 | 6,772 | |||||||||
Federal funds purchased |
— | — | — | |||||||||
Other borrowings |
18,956 | 19,321 | 25,374 | |||||||||
Other liabilities |
1,693 | 1,971 | 1,847 | |||||||||
Total Liabilities |
596,554 | 594,175 | 556,271 | |||||||||
Common equity |
29,286 | 28,429 | 28,035 | |||||||||
Retained earnings |
16,418 | 15,840 | 15,197 | |||||||||
Accumulated other comprehensive income |
313 | 487 | 1,248 | |||||||||
Treasury stock |
(6,734 | ) | (6,734 | ) | (6,734 | ) | ||||||
Total Stockholders’ Equity |
39,283 | 38,022 | 37,746 | |||||||||
Total Liabilities and Stockholders’ Equity |
$ | 635,837 | $ | 632,197 | $ | 594,017 | ||||||
MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
March 31, 2011 and 2010
(Dollar amounts in thousands)
(unaudited)
| For the Three Months Ended | ||||||||
| March 31, | ||||||||
| 2011 | 2010 | |||||||
INTEREST INCOME |
||||||||
Interest and fees on loans |
$ | 5,301 | $ | 5,097 | ||||
Interest-bearing deposits in other institutions |
2 | 4 | ||||||
Federal funds sold |
9 | 11 | ||||||
Investment securities |
||||||||
Taxable interest |
1,323 | 1,203 | ||||||
Tax-exempt interest |
698 | 592 | ||||||
Dividends on stock |
26 | 17 | ||||||
Total interest income |
7,359 | 6,924 | ||||||
INTEREST EXPENSE |
||||||||
Deposits |
2,037 | 2,485 | ||||||
Short term borrowings |
59 | 58 | ||||||
Other borrowings |
109 | 190 | ||||||
Trust preferred securities |
136 | 136 | ||||||
Total interest expense |
2,341 | 2,869 | ||||||
NET INTEREST INCOME |
5,018 | 4,055 | ||||||
Provision for loan losses |
865 | 439 | ||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES |
4,153 | 3,616 | ||||||
NONINTEREST INCOME |
||||||||
Service charges on deposits |
428 | 415 | ||||||
Investment securities gains, net |
15 | 9 | ||||||
Earnings on bank-owned life insurance |
73 | 67 | ||||||
Other income |
183 | 118 | ||||||
Total non-interest income |
699 | 609 | ||||||
NONINTEREST EXPENSE |
||||||||
Salaries and employee benefits |
1,690 | 1,511 | ||||||
Occupancy expense |
272 | 276 | ||||||
Equipment expense |
158 | 198 | ||||||
Data processing costs |
180 | 243 | ||||||
Ohio state franchise tax |
128 | 136 | ||||||
Federal deposit insurance expense |
225 | 202 | ||||||
Professional fees |
211 | 192 | ||||||
Loss on sale of other real estate owned |
(20 | ) | 121 | |||||
Other operating expense |
861 | 679 | ||||||
Total non-interest expense |
3,705 | 3,558 | ||||||
Income before income taxes |
1,147 | 667 | ||||||
Provision for income taxes |
145 | 22 | ||||||
NET INCOME |
$ | 1,002 | $ | 645 | ||||
| Per common share data | ||||||||
Net income per common share — basic |
$ | 0.62 | $ | 0.41 | ||||
Net income per common share — diluted |
$ | 0.62 | $ | 0.41 | ||||
Dividends declared |
$ | 0.26 | $ | 0.26 | ||||
Book value per share(period end) |
$ | 23.86 | $ | 24.05 | ||||
Tangible book value per share (period end) |
$ | 21.09 | $ | 21.15 | ||||
Dividend payout ratio |
40.92 | % | 63.26 | % | ||||
Average shares outstanding — basic |
1,621,889 | 1,565,454 | ||||||
Average shares outstanding — diluted |
1,621,889 | 1,567,441 | ||||||
Period ending shares outstanding |
1,646,609 | 1,569,486 |
| Selected ratios | ||||||||
Return on average assets |
0.63 | % | 0.45 | % | ||||
Return on average equity |
10.50 | % | 7.06 | % | ||||
Yield on earning assets |
5.28 | % | 5.45 | % | ||||
Cost of interest bearing liabilities |
1.77 | % | 2.36 | % | ||||
Net interest spread |
3.51 | % | 3.09 | % | ||||
Net interest margin |
3.68 | % | 3.29 | % | ||||
Efficiency (1) |
60.97 | % | 71.60 | % | ||||
Equity to assets at period end |
6.18 | % | 6.35 | % |
| (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. |
| March 31, | March 31, | |||||||
| Asset quality data | 2011 | 2010 | ||||||
| (Dollar amounts in thousands) | ||||||||
Non-accrual loans |
$ | 19,017 | $ | 18,140 | ||||
Troubled debt restructuring |
2,942 | — | ||||||
90 day past due and accruing |
55 | 3 | ||||||
Non-performing loans |
22,014 | 18,143 | ||||||
Other real estate owned |
2,248 | 2,175 | ||||||
Non-performing assets |
$ | 24,262 | $ | 20,318 | ||||
Allowance for loan losses |
$ | 6,685 | $ | 5,279 | ||||
Allowance for loan losses/total loans |
1.78 | % | 1.47 | % | ||||
Net charge-offs: |
||||||||
Quarter-to-date |
$ | 401 | $ | 97 | ||||
Year-to-date |
401 | 97 | ||||||
Net charge-offs to average loans |
||||||||
Quarter-to-date |
0.11 | % | 0.03 | % | ||||
Year-to-date |
0.11 | % | 0.03 | % | ||||
Non-performing loans/total loans |
5.85 | % | 5.04 | % | ||||
Allowance for loan losses/non-performing loans |
30.37 | % | 29.10 | % | ||||