Middlefield Banc Corp. Reports 2025 Six-Month Financial Results
MIDDLEFIELD, Ohio, July 22, 2025 (GLOBE NEWSWIRE) -- Middlefield Banc Corp. (NASDAQ:MBCN) today reported financial results for the six months ended June 30, 2025.
2025 Second-Quarter Financial Highlights (on a year-over-year basis):
●
Earnings per share increased 46.2% year-over-year to $0.76 per diluted share
●
Asset quality improved from the 2024 fourth quarter with nonperforming assets to total assets decreasing by 32 basis points to 1.30%
●
Net interest margin expanded 37 basis points to 3.88% and increased 19 basis points from the 2025 first quarter
●
Total loans increased $84.2 million, or 5.6% to a record $1.58 billion
●
Total assets increased $96.2 million, or 5.3% to a record $1.92 billion
●
Book value increased 4.3% to $26.74 from $25.63 per share, while tangible book value(1) increased 6.1% to $21.60 from $20.37 per share
(1) See non-GAAP reconciliation under the section "GAAP to Non-GAAP Reconciliations"
"The second quarter of 2025 was another strong quarter of growth, profitability and value creation for Middlefield," stated Ronald L. Zimmerly, Jr., President and Chief Executive Officer. "Total loans have increased at an 8.2% annualized rate since the beginning of the year to a record $1.58 billion, asset quality continued to improve sequentially, and our net interest margin for the second quarter of 2025 expanded 37 basis points year-over-year to 3.88%. These results led to strong growth in profitability during the quarter. Net income also benefited from a $1.2 million net gain on the exchange of real estate associated with the relocation of our Westerville, Ohio branch. Relocating our Westerville office is a great opportunity, supported by favorable demographics and underscores our multi-year strategy to expand our presence in the Central Ohio region. We expect our new Westerville branch to open in the second half of 2025."
"I am pleased by the strong start to 2025 and the direction we are headed. We remain focused on investing in our platform, which includes upgrades to our technology infrastructure, adding new, experienced commercial bankers, and pursuing opportunities to expand Middlefield across our compelling Ohio markets. As a result of these efforts and the contributions of our high-performing team, we expect additional loan and core deposit growth to benefit profitability throughout the remainder of 2025," concluded Mr. Zimmerly.
Income StatementNet interest income for the 2025 second quarter increased 15.6% to $17.4 million, compared to $15.1 million for the 2024 second quarter. The net interest margin for the 2025 second quarter was 3.88%, compared to 3.51% for the same period of 2024. Net interest income for the six months ended June 30, 2025, increased 11.6% to $33.5 million, compared to $30.1 million for the same period last year. The increase was primarily due to strong loan growth, a decrease in FHLB advances, and an overall decline in rates for deposits. Net interest margin for the six months ended June 30, 2025, was 3.79%, compared to 3.53% last year.
Noninterest income for the 2025 second quarter was $3.1 million, compared to $1.8 million for the same period the previous year. For the six months ended June 30, 2025, noninterest income increased $1.5 million to $5.0 million, compared to $3.6 million for the same period in 2024. In April 2025, Middlefield completed an exchange of real estate with the City of Westerville, Ohio for a parcel of land that had a fair value of $1.5 million. In exchange, Middlefield transferred land and a building with related furnishings associated with its current branch located in Westerville, Ohio. The transferred branch had a net book value of $221,000. The exchange of real estate transaction resulted in a one-time, non-cash gain of $1.2 million.
For the 2025 second quarter, noninterest expense was $13.7 million, compared to $11.9 million for the 2024 second quarter. Noninterest expense for the six months ended June 30, 2025, was $25.8 million, compared to $23.9 million for the same period in 2024. Noninterest expense for the 2025 second quarter included a $700,000 loss associated with recording a separate property located in Westerville, Ohio as held for sale.
Net income for the 2025 second quarter was $6.2 million, or $0.76 per diluted share, compared to $4.2 million, or $0.52 per diluted share, for the same period last year. Net income for the six months ended June 30, 2025, was $11.0 million, or $1.36 per diluted share, compared to $8.3 million, or $1.03 per diluted share, for the same period last year.
For the 2025 second quarter, pre-tax, pre-provision net income was $6.9 million, compared to $4.9 million for the same period of 2024. For the six months ended June 30, 2025, pre-tax, pre-provision net income was $12.7 million, compared to $9.7 million for the same period last year. (See non-GAAP reconciliation under the section "GAAP to Non-GAAP Reconciliations".)
Balance SheetTotal assets at June 30, 2025, increased 5.3% to a record $1.92 billion, compared to $1.83 billion at June 30, 2024. Total loans at June 30, 2025, were a record $1.58 billion, compared to $1.50 billion at June 30, 2024. The 5.6% year-over-year increase in total loans was primarily due to higher home equity lines of credit, commercial and industrial loans, residential real estate loans, non-owner occupied, and owner occupied loans, partially offset by a reduction in construction and other loans and multifamily loans.
The investment securities available-for-sale portfolio was $161.1 million at June 30, 2025, compared with $166.4 million at June 30, 2024.
Total liabilities at June 30, 2025, increased 5.4% to $1.71 billion, compared to $1.62 billion at June 30, 2024. Total deposits at June 30, 2025, were $1.59 billion, compared to $1.47 billion at June 30, 2024. The 8.4% year-over-year increase in deposits was primarily due to growth in money market and interest-bearing demand deposits, partially offset by declines in savings deposit accounts. Noninterest-bearing demand deposits were 24.2% of total deposits at June 30, 2025, compared to 26.3% at June 30, 2024. At June 30, 2025, the Company had brokered deposits of $165.1 million, compared to $86.5 million at June 30, 2024.
Michael C. Ranttila, Chief Financial Officer, stated, "Middlefield's highly profitable financial model, disciplined loan pricing, and strong liquidity levels provides us with the flexibility to support both loan and operational growth. We continue to monitor our funding mix to support our loan portfolio at a reasonable cost, and such actions contributed to a seven-basis point reduction in our cost of funds since the beginning of the year. Throughout the second half of 2025, we are focused on growing core deposits by improving the mix of commercial and industrial loans and growing treasury management relationships."
Middlefield's CRE portfolio included the following categories at June 30, 2025:
(Dollar amounts in thousands)
Balance
Percent ofCRE Portfolio
Percent ofLoan Portfolio
Weighted AverageLoan-to-Value
Multi-Family
$
79,497
11.7
%
5.0
%
64.7
%
Owner Occupied
Real Estate and Rental and Leasing
56,806
8.3
%
3.6
%
55.6
%
Other Services (except Public Administration)
40,734
6.0
%
2.6
%
58.2
%
Manufacturing
17,919
2.6
%
1.1
%
44.4
%
Agriculture, Forestry, Fishing and Hunting
12,318
1.8
%
0.8
%
36.3
%
Educational Services
11,844
1.7
%
0.7
%
50.1
%
Other
57,024
8.3
%
3.6
%
54.1
%
Total Owner Occupied
$
196,645
28.7
%
12.4
%
Non-Owner Occupied
Real Estate and Rental and Leasing
333,645
49.0
%
21.1
%
54.8
%
Accommodation and Food Services
40,430
5.9
%
2.6
%
57.0
%
Health Care and Social Assistance
19,456
2.9
%
1.2
%
65.9
%
Manufacturing
7,412
1.1
%
0.5
%
46.7
%
Other
4,089
0.7
%
0.3
%
76.4
%
Total Non-Owner Occupied
$
405,032
59.6
%
25.7
%
Total CRE
$
681,174
100.0
%
43.1
%
Stockholders' Equity and DividendsAt June 30, 2025, stockholders' equity was $216.1 million, compared to $206.8 million at June 30, 2024. The 4.5% year-over-year increase in stockholders' equity was primarily from higher retained earnings, partially offset by an increase in the unrealized losses on the available-for-sale investment portfolio. On a per-share basis, shareholders' equity at June 30, 2025, was $26.74, compared to $25.63 at June 30, 2024.
At June 30, 2025, tangible stockholders' equity(1) was $174.6 million, compared to $164.3 million at June 30, 2024. On a per-share basis, tangible stockholders' equity(1) was $21.60 at June 30, 2025, compared to $20.37 at June 30, 2024. (1)See non-GAAP reconciliation under the section "GAAP to Non-GAAP Reconciliations".
For the six months ended June 30, 2025, the Company declared cash dividends of $0.42 per share, totaling $3.4 million. Beginning in the first quarter of 2025, the Company increased the quarterly cash dividend by $0.01, or 5% from the previous year's $0.20 per share quarterly cash dividend.
For the six months ended June 30, 2025, the Company did not repurchase any shares of its common stock.
At June 30, 2025, the Company's equity-to-assets ratio was 11.23%, compared to 11.31% at June 30, 2024.
Asset QualityFor the six months ended June 30, 2025, the Company recorded a recovery of credit losses of $411,000, compared to a recovery of credit losses of $49,000 for the same period of 2024.
Net recoveries were $227,000, or (0.03%) of average loans, annualized, for the six months ended June 30, 2025, compared to net recoveries of $97,000, or (0.01%) of average loans, annualized, for the same period of 2024.
Nonperforming loans at June 30, 2025, were $25.1 million, compared to $16.0 million at June 30, 2024. The year-over-year increase in nonperforming assets was primarily due to a $12.0 million loan moved to nonaccrual in the 2024 third quarter. The allowance for credit losses at June 30, 2025, stood at $22.3 million, or 1.41% of total loans, compared to $21.8 million, or 1.46% of total loans at June 30, 2024. The increase in the allowance for credit losses was mainly from changes in projected loss drivers, prepayment assumptions, curtailment expectations over the reasonable and supportable forecast period, and geographic footprint of unemployment data, as well as an overall increase in total loans.
Mr. Ranttila continued, "Asset quality demonstrates the success of our disciplined approach to credit quality and risk management, as nonperforming assets to total assets have improved to 1.30% at June 30, 2025, compared to 1.56% at March 31, 2025, and 1.62% at December 31, 2024. Over the past six months, non-performing assets declined by $4.9 million from $30.0 million at December 31, 2024, primarily as a result of the successful payoff of one previously disclosed non-accruing loan. In addition, reductions in the reserve against individually analyzed loans as well as the reserve for unfunded commitments drove a $506,000 recovery for credit losses in the second quarter. We continue to expect stable economic activity across our Central, Western and Northeast Ohio markets that will support loan demand and asset quality throughout 2025."
About Middlefield Banc Corp.Middlefield Banc Corp., headquartered in Middlefield, Ohio, is the Bank holding Company of The Middlefield Banking Company, with total assets of $1.92 billion at June 30, 2025. The Bank operates 21 full-service banking centers and an LPL Financial® brokerage office serving Ada, Beachwood, Bellefontaine, Chardon, Cortland, Dublin, Garrettsville, Kenton, Mantua, Marysville, Middlefield, Newbury, Orwell, Plain City, Powell, Solon, Sunbury, Twinsburg, and Westerville. The Bank also operates a Loan Production Office in Mentor, Ohio.
Additional information is available at www.middlefieldbank.bank
NON-GAAP FINANCIAL MEASURESThis press release includes disclosure of Middlefield Banc Corp.'s tangible book value per share, return on average tangible equity, and pre-tax, pre-provision for loan losses income, which are financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts required to be disclosed by GAAP. Middlefield Banc Corp. believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Middlefield Banc Corp.'s marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. The reconciliations of non-GAAP financial measures are included in the following Consolidated Financial Highlights tables below.
FORWARD-LOOKING STATEMENTSThis 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 several 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(Dollar amounts in thousands, unaudited)
June 30,
March 31,
December 31,
September 30,
June 30,
Balance Sheets (period end)
2025
2025
2024
2024
2024
ASSETS
Cash and due from banks
$
59,145
$
56,150
$
46,037
$
61,851
$
50,496
Federal funds sold
13,701
10,720
9,755
12,022
1,762
Cash and cash equivalents
72,846
66,870
55,792
73,873
52,258
Investment securities available for sale, at fair value
161,116
165,014
165,802
169,895
166,424
Other investments
1,014
1,021
855
895
881
Loans held for sale
152
-
-
249
-
Loans:
Commercial real estate:
Owner occupied
196,645
185,412
181,447
187,313
182,809
Non-owner occupied
405,032
413,621
412,291
407,159
385,648
Multifamily
79,497
88,737
89,849
94,798
86,951
Residential real estate
357,217
351,274
353,442
345,748
337,121
Commercial and industrial
257,519
235,547
229,034
213,172
234,702
Home equity lines of credit
156,297
147,154
143,379
137,761
131,047
Construction and other
123,531
122,653
103,608
111,550
132,530
Consumer installment
6,187
5,951
6,564
7,030
6,896
Total loans
1,581,925
1,550,349
1,519,614
1,504,531
1,497,704
Less allowance for credit losses
22,335
22,401
22,447
22,526
21,795
Net loans
1,559,590
1,527,948
1,497,167
1,482,005
1,475,909
Premises and equipment, net
20,304
20,494
20,565
20,528
20,744
Premises and equipment held for sale
1,015
-
-
-
-
Goodwill
36,356
36,356
36,356
36,356
36,356
Core deposit intangibles
5,112
5,362
5,611
5,869
6,126
Bank-owned life insurance
35,102
34,866
35,259
35,049
34,802
Accrued interest receivable and other assets
31,762
30,425
35,952
32,916
34,686
TOTAL ASSETS
$
1,924,369
$
1,888,356
$
1,853,359
$
1,857,635
$
1,828,186
June 30,
March 31,
December 31,
September 30,
June 30,
2025
2025
2024
2024
2024
LIABILITIES
Deposits:
Noninterest-bearing demand
$
386,248
$
369,492
$
377,875
$
390,933
$
387,024
Interest-bearing demand
221,146
222,953
208,291
218,002
206,542
Money market
466,935
481,664
414,074
376,619
355,630
Savings
184,534
189,943
197,749
199,984
192,472
Time
334,755
275,673
247,704
327,231
327,876
Total deposits
1,593,618
1,539,725
1,445,693
1,512,769
1,469,544
Federal Home Loan Bank advances
89,000
110,000
172,400
106,000
125,000
Other borrowings
11,557
11,609
11,660
11,711
11,762
Accrued interest payable and other liabilities
14,142
13,229
13,044
16,450
15,092
TOTAL LIABILITIES
1,708,317
1,674,563
1,642,797
1,646,930
1,621,398
STOCKHOLDERS' EQUITY
Common stock, no par value; 25,000,000 shares authorized, 9,960,503 shares issued, 8,081,193 shares outstanding as of June 30, 2025
162,195
162,195
161,999
161,916
161,823
Additional paid-in capital
811
515
246
108
-
Retained earnings
116,892
112,432
109,299
106,067
105,342
Accumulated other comprehensive loss
(22,937
)
(20,440
)
(20,073
)
(16,477
)
(19,468
)
Treasury stock, at cost; 1,879,310 shares as of June 30, 2025
(40,909
)
(40,909
)
(40,909
)
(40,909
)
(40,909
)
TOTAL STOCKHOLDERS' EQUITY
216,052
213,793
210,562
210,705
206,788
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
1,924,369
$
1,888,356
$
1,853,359
$
1,857,635
$
1,828,186
MIDDLEFIELD BANC CORP.Consolidated Selected Financial Highlights(Dollar amounts in thousands, unaudited)
For the Three Months Ended
For the Six Months Ended
June 30,
March 31,
December 31,
September 30,
June 30,
June 30,
June 30,
Statements of Income
2025
2025
2024
2024
2024
2025
2024
INTEREST AND DIVIDEND INCOME
Interest and fees on loans
$
25,122
$
23,387
$
23,308
$
23,441
$
23,422
$
48,509
$
45,817
Interest-earning deposits in other institutions
325
291
320
348
386
616
823
Federal funds sold
120
155
151
143
122
275
274
Investment securities:
Taxable interest
526
530
528
528
505
1,056
972
Tax-exempt interest
960
960
961
962
966
1,920
1,938
Dividends on stock
183
150
170
191
198
333
387
Total interest and dividend income
27,236
25,473
25,438
25,613
25,599
52,709
50,211
INTEREST EXPENSE
Deposits
8,789
7,885
8,582
8,792
8,423
16,674
15,889
Short-term borrowings
870
1,347
1,128
1,575
1,920
2,217
3,913
Other borrowings
140
143
173
173
173
283
357
Total interest expense
9,799
