Middlefield Banc Corp. Reports 2022 First Quarter Financial Results

MIDDLEFIELD, Ohio, April 21, 2022 (GLOBE NEWSWIRE) -- Middlefield Banc Corp. (NASDAQ: MBCN) today reported financial results for the 2022 first quarter ended March 31, 2022.

2022 First Quarter Financial Highlights Include (on a year-over-year basis unless noted):

• Returned $1.8 million of capital to shareholders through dividends and the repurchase of 32,150 shares
• Net income was $3.8 million, or $0.65 per diluted share, compared to $4.2 million, or $0.65 per diluted share
• First-quarter pre-tax income benefited from $640,000 of accelerated net fees associated with the Paycheck Protection Program (“PPP”), compared to $800,000 in the 2021 first quarter
• Net interest margin improved by 7 basis points to 3.80%, compared to 3.73% 
• Total loans were $977.7 million, compared to $981.7 million at December 31, 2021
• Total loans increased by $12.5 million or 5.2% annualized from December 31, 2021, without the impact of PPP loan forgiveness
• Return on average assets was 1.17%, compared to 1.22%
• Return on average equity was 10.75%, compared to 11.64%
• Return on average tangible common equity⁽¹⁾ was 12.13%, compared to 13.16%
• Strong asset quality with nonperforming loans to total loans of 0.48%, compared to 0.81%
• Allowance for loan losses was 1.48% of total loans, compared to 1.28%

“Over the past two years, we have focused on supporting our communities while enhancing our asset quality, increasing our allowance for bad debts, managing expenses, and returning excess capital to shareholders through our growing dividend and active share repurchase programs,” stated James R. Heslop, II, President and Chief Executive Officer. “I am proud of our progress and the strong platform we have created. As a result, I believe we are well-positioned to grow our Bank across our Northeast and Central Ohio markets and I am encouraged by the 1.3% increase in total loans from December 31, 2021, when adjusted for the impact of PPP loan forgiveness.”

Mr. Heslop continued, “With strong capital levels, $108.3 million in cash and cash equivalents, and $175.2 million in investments, we continue to allocate excess capital to our dividend and share repurchase programs. Over the last 12 months, we have repurchased 495,131 shares of our common stock at a total cost of $12.0 million. This includes 32,150 shares repurchased during the 2022 first quarter at an average price of $25.47 per share, or 123.40% of our tangible book value of $20.64 at March 31, 2022. We will continue to focus on returning capital to shareholders throughout 2022.”

“While uncertainty has increased across the global economic environment, economic activity within our local Northeast and Central Ohio markets remains compelling. We believe the value we provide our communities supports our growth objectives and we expect 2022 to be another good year for The Middlefield Banking Company,” concluded Mr. Heslop.

Income Statement
Net interest income for the 2022 first quarter was $11.5 million, compared to $11.9 million for the 2021 first quarter. The net interest margin for the 2022 first quarter was 3.80%, compared to 3.73% for the same period of 2021. For the 2022 first quarter, noninterest income decreased 36.7% to $1.4 million from $2.2 million for the same period of 2021. Noninterest expense was $8.3 million for both the 2022 and 2021 first quarters.

Balance Sheet
Total assets at March 31, 2022, decreased 4.7% to $1.32 billion, compared to $1.39 billion at March 31, 2021. Net loans at March 31, 2022, decreased 11.6% to $963.2 million, compared to $1.09 billion at March 31, 2021. Since 2020, Middlefield has helped customers receive $194.9 million of forgiveness payments under the terms of the Paycheck Protection Program, including processing $16.4 million of forgiveness payments during the first quarter of 2022. The balance of PPP loans outstanding at March 31, 2022, was $17.7 million. 

Total deposits at March 31, 2022, were $1.17 billion, compared to $1.23 billion at March 31, 2021. The 4.8% decrease in deposits was primarily due to a decline in time-based and interest-bearing accounts, partially offset by increased noninterest-bearing and savings accounts. The investment portfolio was $175.2 million at March 31, 2022, compared with $123.2 million at March 31, 2021.

Donald L. Stacy, Chief Financial Officer, stated, “We continue to operate with one of the strongest balance sheets in our 120-year history, which provides us with significant flexibility to support our share repurchase programs and growth strategies. In addition, our asset quality is excellent, with nonperforming loans down 47.2% over the prior year, while our allowance for loan losses to nonperforming loans has increased from 157.65% at March 31, 2021, to 306.51% at March 31, 2022.”

Mr. Stacy continued, “I am pleased by the success we have had managing both our noninterest expense and cost of funds. During the first quarter, noninterest expense was flat compared to the same period last year. In addition, our cost of funds declined 14 basis points, helping produce a 7-basis point year-over-year improvement in our net interest margin. As a result, we are well-positioned to benefit from a rising interest rate environment, especially as the prime rate increases above 1.00%.”

Stockholders’ Equity and Dividends
At March 31, 2022, stockholders’ equity was $137.6 million compared to $144.7 million at March 31, 2021. The 4.9% year-over-year decline in stockholders’ equity was primarily due to an increase in the unrealized loss on the available-for-sale investment portfolio during the three-month period and the Company’s stock repurchase program. On a per-share basis, shareholders’ equity at March 31, 2022, was $23.43 compared to $22.80, an increase of 2.8%, over the same period last year.

At March 31, 2022, tangible stockholders’ equity⁽¹⁾ was $121.2 million for the 2022 first quarter, compared to $128.0 million at March 31, 2021. On a per-share basis, tangible stockholders’ equity⁽¹⁾ was $20.64 at March 31, 2022, compared to $20.17 at March 31, 2021, an increase of 2.3%.

For the 2022 first quarter, cash dividends declared per share increased 6.3% to $0.17 per share totaling $1.0 million, compared to $0.16 per share totaling $1.0 million, for the first quarter last year.

At March 31, 2022, the Company had an equity-to-assets leverage ratio of 10.40%, compared to 10.42% at March 31, 2021.

Asset Quality
There was no provision for loan losses for the 2022 first quarter versus a $700,000 provision for loan losses for the same period last year. The year-over-year decline in the provision for loan losses was partially due to strong asset quality and previous year’s prudent build in the Company’s allowance for loan losses associated with the potential economic impacts caused by the COVID-19 pandemic.

Net recoveries were $150,000, or 0.06% of average loans, annualized, during the 2022 first quarter, compared to net charge-offs of $37,000, or 0.01% of average loans, annualized, at March 31, 2021.

Nonperforming loans at March 31, 2022, were $4.7 million, compared to $9.0 million at March 31, 2021. Nonperforming assets at March 31, 2022, were $11.7 million, compared to $16.3 million at March 31, 2021. The allowance for loan losses at March 31, 2022, stood at $14.5 million, or 1.48% of total loans, compared to $14.1 million, or 1.28% of total loans at March 31, 2021.

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 $1.32 billion at March 31, 2022. The bank operates 16 full-service banking centers and an LPL Financial® brokerage office serving Beachwood, Chardon, Cortland, Dublin, Garrettsville, Mantua, 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

⁽¹⁾ This 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 that are 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 tables following Consolidated Financial Highlights below.

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) the effect of the COVID-19 pandemic, including on our credit quality and business operations, as well as its impact on general economic and financial market conditions; (8) changes in the securities markets; or (9) 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)
		March 31,					December 31,					September 30,					June 30,					March 31,
Balance Sheets (period end)		2022					2021					2021					2021					2021
ASSETS
Cash and due from banks	$		78,804			$		97,172			$		113,177			$		82,435			$		93,037
Federal funds sold			29,474					22,322					19,174					10,034					7,436
Cash and cash equivalents			108,278					119,494					132,351					92,469					100,473
Equity securities, at fair value			851					818					833					730					690
Investment securities available for sale, at fair value			175,216					170,199					163,057					150,850					123,218
Loans held for sale			9					1,051					676					790					1,260
Loans:
Commercial real estate:
Owner occupied			113,590					111,470					110,883					109,777					104,379
Non-owner occupied			293,745					283,618					310,222					304,324					304,623
Multifamily			29,385					31,189					30,762					34,926					39,015
Residential real estate			244,747					240,089					232,020					228,102					228,052
Commercial and industrial			131,683					148,812					163,052					200,558					242,651
Home equity lines of credit			106,300					104,355					105,450					107,685					111,474
Construction and other			50,152					54,148					49,378					62,229					64,960
Consumer installment			8,118					8,010					8,515					8,694					9,046
Total loans			977,720					981,691					1,010,282					1,056,295					1,104,200
Less allowance for loan and lease losses			14,492					14,342					14,234					14,200					14,122
Net loans			963,228					967,349					996,048					1,042,095					1,090,078
Premises and equipment, net			17,142					17,272					17,507					17,680					18,002
Goodwill			15,071					15,071					15,071					15,071					15,071
Core deposit intangibles			1,326					1,403					1,484					1,564					1,644
Bank-owned life insurance			17,166					17,060					16,954					16,846					16,740
Other real estate owned			6,992					6,992					7,090					7,090					7,372
Accrued interest receivable and other assets			18,019					14,297					14,794					15,033					13,545
TOTAL ASSETS	$		1,323,298			$		1,331,006			$		1,365,865			$		1,360,218			$		1,388,093
		March 31,					December 31,					September 30,					June 30,					March 31,
		2022						2021					2021					2021					2021
LIABILITIES
Deposits:
Noninterest-bearing demand	$		361,251			$		334,171			$		316,770			$		326,665			$		317,224
Interest-bearing demand			162,010					196,308					237,576					207,725					215,684
Money market			187,807					177,281					178,423					183,453					187,204
Savings			264,784					260,125					256,114					252,171					259,973
Time			191,320					198,725					211,674					225,271					245,342
Total deposits			1,167,172					1,166,610					1,200,557					1,195,285					1,225,427
Other borrowings			12,975					12,901					12,966					13,031					13,095
Accrued interest payable and other liabilities			5,507					6,160					6,287					5,858					4,901
TOTAL LIABILITIES			1,185,654					1,185,671					1,219,810					1,214,174					1,243,423
STOCKHOLDERS' EQUITY
Common stock, no par value; 10,000,000 shares authorized, 7,347,526
shares issued, 5,873,565 shares outstanding as of March 31, 2022			87,562					87,131					87,131					87,131					87,073
Retained earnings			86,804					83,971					80,376					76,150					72,729
Accumulated other comprehensive (loss) income			(6,674	)				3,462					3,610					3,893					2,917
Treasury stock, at cost; 1,473,961 shares as of March 31, 2022			(30,048	)				(29,229	)				(25,062	)				(21,130	)				(18,049	)
TOTAL STOCKHOLDERS' EQUITY			137,644					145,335					146,055					146,044					144,670
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$		1,323,298			$		1,331,006			$		1,365,865			$		1,360,218			$		1,388,093
MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(Dollar amounts in thousands, unaudited)
		For the Three Months Ended
		March 31,					December 31,					September 30,					June 30,					March 31,
Statements of Income			2022					2021					2021					2021					2021
INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$		10,985			$		11,586			$		12,258			$		11,885			$		12,167
Interest-earning deposits in other institutions			24					30					30					12					18
Federal funds sold			3					1					1					1					-
Investment securities:
Taxable interest			443					438					461					410					370
Tax-exempt interest			784					732					673					602					558
Dividends on stock			24					23					24					26					29
Total interest and dividend income			12,263					12,810					13,447					12,936					13,142
INTEREST EXPENSE
Deposits			726					783					915					1,010					1,205
Other borrowings			69					67					69					71					75
Total interest expense			795					850					984					1,081					1,280
NET INTEREST INCOME			11,468					11,960					12,463					11,855					11,862
Provision for loan losses			-					(200	)				-					200					700
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES			11,468					12,160					12,463					11,655					11,162
NONINTEREST INCOME
Service charges on deposit accounts			914					906					876					856					787
Gain (loss) on equity securities			33					(14	)				102					40					81
Earnings on bank-owned life insurance			106					106					108					106					226
Gain on sale of loans			3					118					309					221					592
Revenue from investment services			141					198					192					210					127
Other income			206					221					234					199					405
Total noninterest income			1,403					1,535					1,821					1,632					2,218
NONINTEREST EXPENSE
Salaries and employee benefits			4,386					4,088					4,488					4,321					4,254
Occupancy expense			505					542					425					517					564
Equipment expense			315					358					333					313					357
Data processing costs			682					660					736					698					786
Ohio state franchise tax			293					285					287					286					286
Federal deposit insurance expense			50					50					150					150					144
Professional fees			455					435					136					323					419
Net gain (loss) on other real estate owned			8					(66	)				9					22					46
Advertising expense			228					221					222					221					221
Software amortization expense			48					119					88					74					80
Core deposit intangible amortization			77					80					81					80					80
Other expense			1,219					1,059					951					889					1,080
Total noninterest expense			8,266					7,831					7,906					7,894					8,317
Income before income taxes			4,605					5,864					6,378					5,393					5,063
Income taxes			772					1,027					1,174					968					896
NET INCOME	$		3,833			$		4,837			$		5,204			$		4,425			$		4,167
PTPP(1)	$		4,605			$		5,664			$		6,378			$		5,593			$		5,763
(1)  The pre-tax pre-provision (PTPP) is the income before income taxes before provision for loan losses considerations, for reconciliation of non-GAAP measures.
MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(Dollar amounts in thousands, except per share and share amounts, unaudited)
		For the Three Months Ended
		March 31,					December 31,					September 30,					June 30,					March 31,
			2022					2021					2021					2021					2021
Per common share data
Net income per common share - basic	$		0.65			$		0.81			$		0.85			$		0.70			$		0.65
Net income per common share - diluted	$		0.65			$		0.81			$		0.85			$		0.70			$		0.65
Dividends declared per share	$		0.17			$		0.21			$		0.16			$		0.16			$		0.16
Book value per share (period end)	$		23.43			$		24.68			$		24.13			$		23.50			$		22.80
Tangible book value per share (period end)(2) (3)	$		20.64			$		21.88			$		21.39			$		20.82			$		20.17
Dividends declared	$		1,000			$		1,242			$		978			$		1,004			$		1,016
Dividend yield			2.78	%				3.37	%				2.66	%				2.72	%				3.10	%
Dividend payout ratio			26.09	%				25.68	%				18.79	%				22.69	%				24.38	%
Average shares outstanding - basic			5,879,025					5,951,838					6,136,648					6,297,071					6,364,132
Average shares outstanding - diluted			5,889,836					5,975,333					6,157,181					6,312,230					6,378,493
Period ending shares outstanding			5,873,565					5,888,737					6,054,083					6,215,511					6,344,657
Selected ratios
Return on average assets			1.17	%				1.41	%				1.51	%				1.30	%				1.22	%
Return on average equity			10.75	%				13.17	%				13.95	%				12.10	%				11.64	%
Return on average tangible common equity(2) (4)			12.13	%				14.85	%				15.71	%				13.65	%				13.16	%
Efficiency(1)			62.54	%				56.56	%				54.04	%				57.18	%				57.81	%
Equity to assets at period end			10.40	%				10.92	%				10.69	%				10.74	%				10.42	%
Noninterest expense to average assets			0.62	%				0.58	%				0.58	%				0.58	%				0.60	%
(1)  The efficiency ratio is calculated by dividing noninterest expense less amortization of intangibles by the sum of net interest income on a fully taxable equivalent basis plus noninterest income
(2)  See reconciliation of non-GAAP measures below
(3)  Calculated by dividing tangible common equity by shares outstanding
(4)  Calculated by dividing annualized net income for each period by average tangible common equity
MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(Unaudited)
		For the Three Months Ended
		March 31,					December 31,					September 30,					June 30,					March 31,
Yields			2022					2021					2021					2021					2021
Interest-earning assets:
Loans receivable(2)			4.53	%				4.61	%				4.74	%				4.43	%				4.48	%
Investment securities(2)			3.41	%				3.30	%				3.37	%				3.47	%				3.75	%
Interest-earning deposits with other banks			0.23	%				0.20	%				0.21	%				0.18	%				0.20	%
Total interest-earning assets			4.06	%				4.07	%				4.20	%				4.05	%				4.11	%
Deposits:
Interest-bearing demand deposits			0.14	%				0.12	%				0.12	%				0.12	%				0.16	%
Money market deposits			0.47	%				0.47	%				0.46	%				0.46	%				0.47	%
Savings deposits			0.06	%				0.06	%				0.06	%				0.06	%				0.07	%
Certificates of deposit			0.87	%				0.90	%				1.08	%				1.19	%				1.28	%
Total interest-bearing deposits			0.37	%				0.36	%				0.41	%				0.46	%				0.53	%
Non-Deposit Funding:
Borrowings			2.16	%				2.09	%				2.11	%				2.18	%				2.12	%
Total interest-bearing liabilities			0.39	%				0.37	%				0.42	%				0.47	%				0.54	%
Cost of deposits			0.25	%				0.26	%				0.30	%				0.34	%				0.40	%
Cost of funds			0.27	%				0.27	%				0.31	%				0.35	%				0.41	%
Net interest margin(1)			3.80	%				3.82	%				3.91	%				3.72	%				3.73	%
(1) Net interest margin represents net interest income as a percentage of average interest-earning assets.
(2) Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were determined using an effective tax rate of 21%.
		For the Three Months Ended
		March 31,					December 31,					September 30,					June 30,					March 31,
Asset quality data			2022					2021					2021					2021					2021
(Dollar amounts in thousands, unaudited)
Nonperforming loans(1)	$		4,728			$		4,859			$		6,806			$		7,760			$		8,958
Other real estate owned			6,992					6,992					7,090					7,090					7,372
Nonperforming assets	$		11,720			$		11,851			$		13,896			$		14,850			$		16,330
Allowance for loan losses	$		14,492			$		14,342			$		14,234			$		14,200			$		14,122
Allowance for loan losses/total loans			1.48	%				1.46	%				1.41	%				1.34	%				1.28	%
Net (recoveries) charge-offs:
Quarter-to-date	$		(150	)		$		(308	)		$		(34	)		$		122			$		37
Net (recoveries) charge-offs to average loans, annualized:
Quarter-to-date			(0.06	)%				(0.12	)%				(0.01	)%				0.05	%				0.01
Nonperforming loans/total loans			0.48	%				0.49	%				0.67	%				0.73	%				0.81	%
Allowance for loan losses/nonperforming loans			306.51	%				295.16	%				209.14	%				182.99	%				157.65	%
Nonperforming assets/total assets			0.89	%				0.89	%				1.02	%				1.09	%				1.18	%
(1) Nonperforming loans exclude troubled debt restructurings that are performing in accordance with their terms over a prescribed period of time.
Reconciliation of Common Stockholders' Equity to Tangible Common Equity		For the Three Months Ended
(Dollar amounts in thousands, unaudited)		March 31,					December 31,					September 30,					June 30,					March 31,
			2022					2021					2021					2021					2021
Stockholders' Equity	$		137,644			$		145,335			$		146,055			$		146,044			$		144,670
Less Goodwill and other intangibles			16,397					16,474					16,555					16,635					16,715
Tangible Common Equity	$		121,247			$		128,861			$		129,500			$		129,409			$		127,955
Shares outstanding			5,873,565					5,888,737					6,054,083					6,215,511					6,344,657
Tangible book value per share	$		20.64			$		21.88			$		21.39			$		20.82			$		20.17
Reconciliation of Average Equity to Return on Average Tangible Common Equity		For the Three Months Ended
		March 31,					December 31,					September 30,					June 30,					March 31,
			2022					2021					2021					2021					2021
Average Stockholders' Equity	$		144,630			$		145,716			$		148,048			$		146,719			$		145,208
Less Average Goodwill and other intangibles			16,435					16,513					16,594					16,674					16,754
Average Tangible Common Equity	$		128,195			$		129,203			$		131,454			$		130,045			$		128,454
Net income	$		3,833			$		4,837			$		5,204			$		4,425			$		4,167
Return on average tangible common equity (annualized)			12.13	%				14.85	%				15.71	%				13.65	%				13.16	%
Reconciliation of Pre-Tax Pre-Provision Income (PTPP)		For the Three Months Ended
		March 31,					December 31,					September 30,					June 30,					March 31,
			2022					2021					2021					2021					2021
Net income	$		3,833			$		4,837			$		5,204			$		4,425			$		4,167
Add Income Taxes			772					1,027					1,174					968					896
Add Provision for loan losses			-					(200	)				-					200					700
PTPP	$		4,605			$		5,664			$		6,378			$		5,593			$		5,763
MIDDLEFIELD BANC CORP.
Average Balance Sheets
(Dollar amounts in thousands, unaudited)
		For the Three Months Ended
		March 31,															March 31,
			2022															2021
		Average										Average					Average										Average
		Balance					Interest					Yield/Cost					Balance					Interest					Yield/Cost
Interest-earning assets:
Loans receivable(3)	$		983,853			$		10,985					4.53	%		$		1,103,373			$		12,167				4.48	%
Investment securities(3)			170,829					1,227					3.41	%				116,510					928				3.75	%
Interest-earning deposits with other banks(4)			91,690					51					0.23	%				93,709					47				0.20	%
Total interest-earning assets			1,246,372					12,263					4.06	%				1,313,592					13,142				4.11	%
Noninterest-earning assets			85,667															71,007
Total assets	$		1,332,039													$		1,384,599
Interest-bearing liabilities:
Interest-bearing demand deposits	$		170,353			$		60					0.14	%		$		203,047			$		78				0.16	%
Money market deposits			184,265					212					0.47	%				195,275					228				0.47	%
Savings deposits			260,162					38					0.06	%				256,151					47				0.07	%
Certificates of deposit			193,657					416					0.87	%				269,493					852				1.28	%
Short-term borrowings			-					-					0.00	%				111					-				0.00	%
Other borrowings			12,943					69					2.16	%				14,258					75				2.12	%
Total interest-bearing liabilities			821,380					795					0.39	%				938,335					1,280				0.54	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits			359,656															295,199
Other liabilities			6,373															5,857
Stockholders' equity			144,630															145,208
Total liabilities and stockholders' equity	$		1,332,039														$	1,384,599
Net interest income						$		11,468													$		11,862
Interest rate spread(1)													3.67	%													3.57	%
Net interest margin(2)													3.80	%													3.73	%
Ratio of average interest-earning assets to average interest-bearing liabilities													151.74	%													139.99	%
(1) Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.
(2) Net interest margin represents net interest income as a percentage of average interest-earning assets.
(3) Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $223 and $169 for the three months ended March 31, 2022 and 2021, respectively
(4) Includes dividends received on restricted stock.
		For the Three Months Ended
		March 31,															December 31,
			2022															2021
		Average										Average					Average									Average
		Balance					Interest					Yield/Cost					Balance					Interest				Yield/Cost
Interest-earning assets:
Loans receivable(3)	$		983,853			$		10,985					4.53	%		$		999,229			$		11,586				4.61	%
Investment securities(3)			170,829					1,227					3.41	%				164,254					1,170				3.30	%
Interest-earning deposits with other banks(4)			91,690					51					0.23	%				104,804					54				0.20	%
Total interest-earning assets			1,246,372					12,263					4.06	%				1,268,287					12,810				4.07	%
Noninterest-earning assets			85,667															90,556
Total assets	$		1,332,039													$		1,358,843
Interest-bearing liabilities:
Interest-bearing demand deposits	$		170,353			$		60					0.14	%		$		212,861			$		66				0.12	%
Money market deposits			184,265					212					0.47	%				180,201					214				0.47	%
Savings deposits			260,162					38					0.06	%				257,344					39				0.06	%
Certificates of deposit			193,657					416					0.87	%				204,904					464				0.90	%
Other borrowings			12,943					69					2.16	%				12,934					67				2.09	%
Total interest-bearing liabilities			821,380					795					0.39	%				868,244					850				0.37	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits			359,656															337,900
Other liabilities			6,373															6,983
Stockholders' equity			144,630															145,716
Total liabilities and stockholders' equity	$		1,332,039														$	1,358,843
Net interest income						$		11,468													$		11,960
Interest rate spread(1)													3.67	%													3.70	%
Net interest margin(2)													3.80	%													3.82	%
Ratio of average interest-earning assets to average interest-bearing liabilities													151.74	%													146.07	%
(1) Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.
(2) Net interest margin represents net interest income as a percentage of average interest-earning assets.
(3) Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $223 and $210 for the three months ended March 31, 2022, and December 31, 2021, respectively.
(4) Includes dividends received on restricted stock.

Company Contact:	Investor and Media Contact:
James Heslop President/Chief Executive Officer Middlefield Banc Corp. (440) 632-1666 Ext. 3219 JHeslop@middlefieldbank.com	Andrew M. Berger Managing Director SM Berger & Company, Inc. (216) 464-6400 andrew@smberger.com