MIDDLEFIELD, Ohio, Oct. 17, 2024 (GLOBE NEWSWIRE) -- Middlefield Banc Corp. (NASDAQ:MBCN) today reported financial results for the nine months ended September 30, 2024.
2024 Nine-Month Financial Highlights (on a year-over-year basis):
- Net income was $10.7 million, compared to $13.8 million
- Pre-tax, pre-provision net income(1) was $14.7 million, compared to $19.0 million
- Earnings were $1.32 per diluted share, compared to $1.70 per diluted share
- Net interest income after the provision for credit losses was $42.9 million, compared to $47.4 million
- Noninterest income increased 4.1% to $5.3 million, compared to $5.1 million
- Total loans increased 3.9% to a record $1.50 billion, compared to $1.45 billion
- Total deposits increased 3.8% to a record $1.51 billion, compared to $1.46 billion
- Return on average assets annualized was 0.77%, compared to 1.06%
- Return on average equity annualized was 6.90%, compared to 9.43%
- Return on average tangible common equity(1) was 8.68%, compared to 11.92%
- Nonperforming assets to total assets increased to 1.62% from 0.75%
- Allowance for credit losses was 1.50% of total loans, compared to 1.45%
- Equity to assets strengthened to 11.34%, compared to 10.80%
- Book value increased 9.1% to $26.11 from $23.94 per share
- Tangible book value(1) increased 12.1% to $20.87 from $18.62 per share
(1) See non-GAAP reconciliation under the section "GAAP to Non-GAAP Reconciliations"
Ronald L. Zimmerly, Jr., President and Chief Executive Officer, stated, "We ended the third quarter of 2024 with record total assets and deposits, as well as a record book value per share. These results reflect our team's dedication and commitment to serve customers throughout our Central, Western and Northeast Ohio markets. We ended the quarter with higher charge-offs and non-performing loans, associated with one customer. As a result, the provision for credit losses increased during the third quarter and reduced after tax earnings by $0.12 per diluted share. Despite these one-time impacts, we produced strong levels of core profitability, including the highest level of pre-tax pre-provision income in the past four quarters."
"I am pleased with the progress we are making maintaining appropriate funding costs and controlling noninterest expense, as our quarterly cost of funds declined sequentially for the first time in ten quarters, and noninterest expense was at the lowest level in six quarters. We expect the economic environment will remain fluid over the near-term, and as we look to 2025, we will continue to focus on supporting our communities, strategically allocating capital, maintaining disciplined underwriting standards, and prudently managing expenses," concluded Mr. Zimmerly.
Income Statement
Net interest income for the nine months ended September 30, 2024, decreased $4.7 million to $45.1 million, compared to $49.8 million for the same period last year. The net interest margin for the nine months ended September 30, 2024, was 3.50%, compared to 4.09% last year. Net interest income for the 2024 third quarter decreased $894,000 to $15.1 million, compared to $16.0 million for the 2023 third quarter. The net interest margin for the 2024 third quarter was 3.46%, compared to 3.82% for the same period of 2023.
For the nine months ended September 30, 2024, noninterest income increased $211,000 to $5.3 million, compared to $5.1 million for the same period in 2023. Noninterest income for the 2024 third quarter was $1.7 million, compared to $1.8 million for the same period the previous year.
Noninterest expense for the nine months ended September 30, 2024, was $35.7 million, compared to $36.0 million for the same period in 2023. For the 2024 third quarter, noninterest expense was $11.9 million, compared to $12.1 million for the 2023 third quarter.
Net income for the nine months ended September 30, 2024, was $10.7 million, or $1.32 per diluted share, compared to $13.8 million, or $1.70 per diluted share, for the same period last year. Net income for the 2024 third quarter was $2.3 million, or $0.29 per diluted share, compared to $3.8 million, or $0.47 per diluted share, for the same period last year.
For the nine months ended September 30, 2024, pre-tax, pre-provision net income was $14.7 million, compared to $19.0 million last year. For the 2024 third quarter, pre-tax, pre-provision net income was $4.9 million, compared to $5.7 million for the same period of 2023. (See non-GAAP reconciliation under the section "GAAP to Non-GAAP Reconciliations".)
Balance Sheet
Total assets at September 30, 2024, increased 3.6% to $1.86 billion, compared to $1.79 billion at September 30, 2023. Total loans at September 30, 2024, were $1.50 billion, compared to $1.45 billion at September 30, 2023. The 3.9% year-over-year increase in total loans was primarily due to higher non-owner occupied and residential real estate loans.
Total liabilities at September 30, 2024, increased 3.0% to $1.65 billion, compared to $1.60 billion at September 30, 2023. Total deposits at September 30, 2024, were $1.51 billion, compared to $1.46 billion at September 30, 2023. The 3.8% year-over-year increase in deposits was primarily due to growth in money market and time deposits, partially offset by declines in noninterest-bearing and interest-bearing demand and savings accounts. Noninterest-bearing demand deposits were 25.8% of total deposits at September 30, 2024, compared to 29.1% at September 30, 2023. At September 30, 2024, the Company had brokered deposits of $86.5 million, compared to $53.5 million at September 30, 2023.
The investment securities available-for-sale portfolio was $169.9 million at September 30, 2024, compared with $159.4 million at September 30, 2023.
Mr. Ranttila, Chief Financial Officer, stated, "We continue to look at opportunities to proactively strengthen our balance sheet and improve our cost of funds. In addition, since December 31, 2023, deposits have increased 6.0%, while our Federal Home Loan Bank ("FHLB") advances have decreased by 35.0%. This is the lowest level of FHLB advances in over a year. In addition, during the quarter, we received approval to use the Federal Reserve Board's discount window, adding a new and efficient liquidity provider. The combination of high levels of potentially liquid assets, cash flows from operations, and additional borrowing capacity continues to provide us with excellent liquidity levels to support our long-term growth strategies and our legacy of returning excess capital to shareholders."
Middlefield's CRE portfolio included the following categories at September 30, 2024:
| Balance | Percent of | Percent of | ||||||||||
| CRE Category | (in thousands) | CRE Portfolio | Loan Portfolio | |||||||||
| Multi-Family | $ | 94,798 | 13.8 | % | 6.3 | % | ||||||
| Office Space | 75,149 | 10.9 | % | 5.0 | % | |||||||
| Shopping Plazas | 69,762 | 10.1 | % | 4.6 | % | |||||||
| Self-Storage | 56,041 | 8.1 | % | 3.7 | % | |||||||
| Hospitality | 39,840 | 5.8 | % | 2.6 | % | |||||||
| Senior Living | 23,069 | 3.3 | % | 1.5 | % | |||||||
| Other | 330,611 | 48.0 | % | 22.0 | % | |||||||
| Total CRE | $ | 689,270 | 100.0 | % | 45.7 | % | ||||||
Stockholders' Equity and Dividends
At September 30, 2024, stockholders' equity was $210.7 million, compared to $193.7 million at September 30, 2023. The 8.8% year-over-year increase in stockholders' equity was primarily from higher retained earnings and an improvement in the unrealized losses on the available-for-sale investment portfolio, partially offset by stock acquired under the Company's stock repurchase program. On a per-share basis, shareholders' equity at September 30, 2024, was $26.11, compared to $23.94 at September 30, 2023.
At September 30, 2024, tangible stockholders' equity(1) was $168.5 million, compared to $150.6 million at September 30, 2023. On a per-share basis, tangible stockholders' equity(1) was $20.87 at September 30, 2024, compared to $18.62 at September 30, 2023. (1)See non-GAAP reconciliation under the section "GAAP to Non-GAAP Reconciliations".
For the nine months ended September 30, 2024, the Company declared cash dividends of $0.60 per share, totaling $4.8 million.
For the nine months ended September 30, 2024, the Company repurchased 43,858 shares of its common stock, at an average price of $24.00 per share. There were no repurchases during the third quarter of 2024.
At September 30, 2024, the Company's equity-to-assets ratio was 11.34%, compared to 10.80% at September 30, 2023.
Asset Quality
For the nine months ended September 30, 2024, the Company recorded a provision for credit losses of $2.2 million, versus a provision for credit losses of $2.4 million for the same period last year. For the 2024 third quarter, the Company recorded a provision for credit losses of $2.2 million, compared to a provision for credit losses of $1.1 million for the same period of 2023.
Net charge-offs were $1.3 million, or 0.11% of average loans, annualized, for the nine months ended September 30, 2024, compared to net charge-offs of $87,000, or 0.01% of average loans, annualized, for the same period last year. Net charge-offs were $1.4 million, or 0.36% of average loans, annualized, for the 2024 third quarter, compared to net recoveries of $16,000, or 0.00% of average loans, annualized, for the same period of 2023. The higher net charge-offs were due to the partial charge-off of one loan during the 2024 third quarter.
Nonperforming loans at September 30, 2024, were $30.1 million, compared to $7.7 million at September 30, 2023. Nonperforming assets at September 30, 2024, were $30.1 million, compared to $13.5 million at September 30, 2023. The increase in nonperforming assets is primarily the result of a $13.5 million loan moved to nonaccrual in the 2024 third quarter, subsequent to the partial charge-off noted in the previous paragraph. The allowance for credit losses at September 30, 2024, stood at $22.5 million, or 1.50% of total loans, compared to $21.0 million, or 1.45% of total loans at September 30, 2023. 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.
Michael Ranttila stated, "Nonperforming assets during the third quarter were impacted by a $13.5 million loan. Combined with the two previously disclosed relationships that moved to nonaccrual in the second quarter of 2024, these three customers accounted for $20.2 million of nonperforming assets at September 30, 2024. We believe these relationships do not indicate a trend in the markets we serve, our portfolio, or underwriting standards. Despite this increase, we remain well reserved for potential credit losses with an allowance for credit losses to total loans of 1.50% at September 30, 2024, which was up slightly from both the same period a year ago, and the quarter ended June 30, 2024."
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 $1.86 billion at September 30, 2024. 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 MEASURES
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 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 STATEMENTS
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 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.
| Company Contact: | Investor and Media Contact: |
| Ronald L. Zimmerly, Jr. President and Chief Executive Officer Middlefield Banc Corp. (419) 673-1217 [email protected] | Andrew M. Berger Managing Director SM Berger & Company, Inc. (216) 464-6400 [email protected] |
MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(Dollar amounts in thousands, unaudited)
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
| Balance Sheets (period end) | 2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and due from banks | $ | 61,851 | $ | 50,496 | $ | 44,816 | $ | 56,397 | $ | 56,228 | ||||||||||
| Federal funds sold | 12,022 | 1,762 | 1,438 | 4,439 | 9,274 | |||||||||||||||
| Cash and cash equivalents | 73,873 | 52,258 | 46,254 | 60,836 | 65,502 | |||||||||||||||
| Investment securities available for sale, at fair value | 169,895 | 166,424 | 167,890 | 170,779 | 159,414 | |||||||||||||||
| Other investments | 895 | 881 | 907 | 955 | 958 | |||||||||||||||
| Loans held for sale | 249 | - | - | - | 632 | |||||||||||||||
| Loans: | ||||||||||||||||||||
| Commercial real estate: | ||||||||||||||||||||
| Owner occupied | 187,313 | 182,809 | 178,543 | 183,545 | 185,593 | |||||||||||||||
| Non-owner occupied | 407,159 | 385,648 | 398,845 | 401,580 | 382,676 | |||||||||||||||
| Multifamily | 94,798 | 86,951 | 81,691 | 82,506 | 82,578 | |||||||||||||||
| Residential real estate | 345,748 | 337,121 | 331,480 | 328,854 | 321,331 | |||||||||||||||
| Commercial and industrial | 213,172 | 234,702 | 227,433 | 221,508 | 214,334 | |||||||||||||||
| Home equity lines of credit | 137,761 | 131,047 | 129,287 | 127,818 | 127,494 | |||||||||||||||
| Construction and other | 111,550 | 132,530 | 135,716 | 125,105 | 127,106 | |||||||||||||||
| Consumer installment | 7,030 | 6,896 | 7,131 | 7,214 | 7,481 | |||||||||||||||
| Total loans | 1,504,531 | 1,497,704 | 1,490,126 | 1,478,130 | 1,448,593 | |||||||||||||||
| Less allowance for credit losses | 22,526 | 21,795 | 21,069 | 21,693 | 20,986 | |||||||||||||||
| Net loans | 1,482,005 | 1,475,909 | 1,469,057 | 1,456,437 | 1,427,607 | |||||||||||||||
| Premises and equipment, net | 20,528 | 20,744 | 21,035 | 21,339 | 21,708 | |||||||||||||||
| Goodwill | 36,356 | 36,356 | 36,356 | 36,356 | 36,197 | |||||||||||||||
| Core deposit intangibles | 5,869 | 6,126 | 6,384 | 6,642 | 6,906 | |||||||||||||||
| Bank-owned life insurance | 35,049 | 34,802 | 34,575 | 34,349 | 34,153 | |||||||||||||||
| Other real estate owned | - | - | - | - | 5,792 | |||||||||||||||
| Accrued interest receivable and other assets | 32,916 | 34,686 | 34,210 | 35,190 | 34,551 | |||||||||||||||
| TOTAL ASSETS | $ | 1,857,635 | $ | 1,828,186 | $ | 1,816,668 | $ | 1,822,883 | $ | 1,793,420 | ||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
| 2024 | 2024 | 2024 | 2023 | 2023 | ||||||||||||||||
| LIABILITIES | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Noninterest-bearing demand | $ | 390,933 | $ | 387,024 | $ | 390,185 | $ | 401,384 | $ | 424,055 | ||||||||||
| Interest-bearing demand | 218,002 | 206,542 | 209,015 | 205,582 | 243,973 | |||||||||||||||
| Money market | 376,619 | 355,630 | 318,823 | 274,682 | 275,766 | |||||||||||||||
| Savings | 199,984 | 192,472 | 196,721 | 210,639 | 216,453 | |||||||||||||||
| Time | 327,231 | 327,876 | 332,165 | 334,315 | 296,732 | |||||||||||||||
| Total deposits | 1,512,769 | 1,469,544 | 1,446,909 | 1,426,602 | 1,456,979 | |||||||||||||||
| Federal Home Loan Bank advances | 106,000 | 125,000 | 137,000 | 163,000 | 118,000 | |||||||||||||||
| Other borrowings | 11,711 | 11,762 | 11,812 | 11,862 | 11,912 | |||||||||||||||
| Accrued interest payable and other liabilities | 16,450 | 15,092 | 15,372 | 15,738 | 12,780 | |||||||||||||||
| TOTAL LIABILITIES | 1,646,930 | 1,621,398 | 1,611,093 | 1,617,202 | 1,599,671 | |||||||||||||||
| STOCKHOLDERS' EQUITY | ||||||||||||||||||||
| Common stock, no par value; 25,000,000 shares authorized, 9,950,342 | ||||||||||||||||||||
| shares issued, 8,071,032 shares outstanding as of September 30, 2024 | 161,916 | 161,823 | 161,823 | 161,388 | 161,312 | |||||||||||||||
| Additional paid-in capital | 108 | - | - | - | - | |||||||||||||||
| Retained earnings | 106,067 | 105,342 | 102,791 | 100,237 | 98,717 | |||||||||||||||
| Accumulated other comprehensive loss | (16,477 | ) | (19,468 | ) | (18,130 | ) | (16,090 | ) | (26,426 | ) | ||||||||||
| Treasury stock, at cost; 1,879,310 shares as of September 30, 2024 | (40,909 | ) | (40,909 | ) | (40,909 | ) | (39,854 | ) | (39,854 | ) | ||||||||||
| TOTAL STOCKHOLDERS' EQUITY | 210,705 | 206,788 | 205,575 | 205,681 | 193,749 | |||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,857,635 | $ | 1,828,186 | $ | 1,816,668 | $ | 1,822,883 | $ | 1,793,420 | ||||||||||
MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(Dollar amounts in thousands, unaudited)
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | ||||||||||||||||||||||
| Statements of Income | 2024 | 2024 | 2024 | 2023 | 2023 | 2024 | 2023 | |||||||||||||||||||||
| INTEREST AND DIVIDEND INCOME | ||||||||||||||||||||||||||||
| Interest and fees on loans | $ | 23,441 | $ | 23,422 | $ | 22,395 | $ | 22,027 | $ | 20,899 | $ | 69,258 | $ | 59,935 | ||||||||||||||
| Interest-earning deposits in other institutions | 348 | 386 | 437 | 370 | 300 | 1,171 | 920 | |||||||||||||||||||||
| Federal funds sold | 143 | 122 | 152 | 94 | 266 | 417 | 678 | |||||||||||||||||||||
| Investment securities: | ||||||||||||||||||||||||||||
| Taxable interest | 528 | 505 | 467 | 479 | 477 | 1,500 | 1,415 | |||||||||||||||||||||
| Tax-exempt interest | 962 | 966 | 972 | 976 | 980 | 2,900 | 2,938 | |||||||||||||||||||||
| Dividends on stock | 191 | 198 | 189 | 144 | 148 | 578 | 326 | |||||||||||||||||||||
| Total interest and dividend income | 25,613 | 25,599 | 24,612 | 24,090 | 23,070 | 75,824 | 66,212 | |||||||||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||||||||||
| Deposits | 8,792 | 8,423 | 7,466 | 6,522 | 5,632 | 24,681 | 12,472 | |||||||||||||||||||||
| Short-term borrowings | 1,575 | 1,920 | 1,993 | 2,013 | 1,258 | 5,488 | 3,373 | |||||||||||||||||||||
| Other borrowings | 173 | 173 | 184 | 179 | 213 | 530 | 539 | |||||||||||||||||||||
| Total interest expense | 10,540 | 10,516 | 9,643 | 8,714 | 7,103 | 30,699 | 16,384 | |||||||||||||||||||||
| NET INTEREST INCOME | 15,073 | 15,083 | 14,969 | 15,376 | 15,967 | 45,125 | 49,828 | |||||||||||||||||||||
| Provision (Recovery of) for credit losses | 2,234 | 87 | (136 | ) | 554 | 1,127 | 2,185 | 2,449 | ||||||||||||||||||||
| NET INTEREST INCOME AFTER PROVISION | ||||||||||||||||||||||||||||
| (RECOVERY OF) FOR CREDIT LOSSES | 12,839 | 14,996 | 15,105 | 14,822 | 14,840 | 42,940 | 47,379 | |||||||||||||||||||||
| NONINTEREST INCOME | ||||||||||||||||||||||||||||
| Service charges on deposit accounts | 959 | 971 | 909 | 997 | 954 | 2,839 | 2,880 | |||||||||||||||||||||
| Gain (loss) on equity securities | 14 | (27 | ) | (52 | ) | (4 | ) | 48 | (65 | ) | (157 | ) | ||||||||||||||||
| (Loss) gain on other real estate owned | - | - | - | (172 | ) | - | - | 2 | ||||||||||||||||||||
| Earnings on bank-owned life insurance | 246 | 227 | 227 | 196 | 207 | 700 | 627 | |||||||||||||||||||||
| Gain on sale of loans | 56 | 69 | 10 | 23 | 45 | 135 | 74 | |||||||||||||||||||||
| Revenue from investment services | 206 | 269 | 204 | 193 | 190 | 679 | 550 | |||||||||||||||||||||
| Gross rental income | 3 | - | 67 | 132 | 110 | 70 | 290 | |||||||||||||||||||||
| Other income | 259 | 251 | 431 | 237 | 263 | 941 | 822 | |||||||||||||||||||||
| Total noninterest income | 1,743 | 1,760 | 1,796 | 1,602 | 1,817 | 5,299 | 5,088 | |||||||||||||||||||||
| NONINTEREST EXPENSE | ||||||||||||||||||||||||||||
| Salaries and employee benefits | 6,201 | 6,111 | 6,333 | 6,646 | 5,994 | 18,645 | 17,865 | |||||||||||||||||||||
| Occupancy expense | 627 | 601 | 552 | 512 | 699 | 1,780 | 2,054 | |||||||||||||||||||||
| Equipment expense | 203 | 261 | 240 | 273 | 297 | 704 | 969 | |||||||||||||||||||||
| Data processing costs | 1,248 | 1,168 | 1,249 | 1,348 | 1,209 | 3,665 | 3,415 | |||||||||||||||||||||
| Ohio state franchise tax | 399 | 397 | 397 | 397 | 398 | 1,193 | 1,180 | |||||||||||||||||||||
| Federal deposit insurance expense | 255 | 256 | 251 | 285 | 207 | 762 | 576 | |||||||||||||||||||||
| Professional fees | 539 | 557 | 558 | 660 | 545 | 1,654 | 1,633 | |||||||||||||||||||||
| Advertising expense | 283 | 508 | 419 | 162 | 414 | 1,210 | 1,315 | |||||||||||||||||||||
| Software amortization expense | 74 | 21 | 22 | 22 | 24 | 117 | 73 | |||||||||||||||||||||
| Core deposit intangible amortization | 257 | 258 | 258 | 264 | 265 | 773 | 794 | |||||||||||||||||||||
| Gross other real estate owned expenses | - | - | 99 | 120 | 195 | 99 | 390 | |||||||||||||||||||||
| Merger-related costs | - | - | - | - | 22 | - | 472 | |||||||||||||||||||||
| Other expense | 1,785 | 1,764 | 1,587 | 1,483 | 1,849 | 5,136 | 5,228 | |||||||||||||||||||||
| Total noninterest expense | 11,871 | 11,902 | 11,965 | 12,172 | 12,118 | 35,738 | 35,964 | |||||||||||||||||||||
| Income before income taxes | 2,711 | 4,854 | 4,936 | 4,252 | 4,539 | 12,501 | 16,503 | |||||||||||||||||||||
| Income taxes | 371 | 690 | 769 | 709 | 703 | 1,830 | 2,678 | |||||||||||||||||||||
| NET INCOME | $ | 2,340 | $ | 4,164 | $ | 4,167 | $ | 3,543 | $ | 3,836 | $ | 10,671 | $ | 13,825 | ||||||||||||||
| PTPP (1) | $ | 4,945 | $ | 4,941 | $ | 4,800 | $ | 4,806 | $ | 5,666 | $ | 14,686 | $ | 18,952 | ||||||||||||||
MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(Dollar amounts in thousands, except per share and share amounts, unaudited)
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | ||||||||||||||||||||||
| 2024 | 2024 | 2024 | 2023 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
| Per common share data | ||||||||||||||||||||||||||||
| Net income per common share - basic | $ | 0.29 | $ | 0.52 | $ | 0.52 | $ | 0.44 | $ | 0.47 | $ | 1.32 | $ | 1.71 | ||||||||||||||
| Net income per common share - diluted | $ | 0.29 | $ | 0.52 | $ | 0.51 | $ | 0.44 | $ | 0.47 | $ | 1.32 | $ | 1.70 | ||||||||||||||
| Dividends declared per share | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.25 | $ | 0.20 | $ | 0.60 | $ | 0.60 | ||||||||||||||
| Book value per share (period end) | $ | 26.11 | $ | 25.63 | $ | 25.48 | $ | 25.41 | $ | 23.94 | $ | 26.11 | $ | 23.94 | ||||||||||||||
| Tangible book value per share (period end) (1) (2) | $ | 20.87 | $ | 20.37 | $ | 20.18 | $ | 20.10 | $ | 18.62 | $ | 20.87 | $ | 18.62 | ||||||||||||||
| Dividends declared | $ | 1,615 | $ | 1,613 | $ | 1,613 | $ | 2,023 | $ | 1,619 | $ | 4,841 | $ | 4,841 | ||||||||||||||
| Dividend yield | 2.76 | % | 3.34 | % | 3.37 | % | 3.06 | % | 3.12 | % | 2.78 | % | 3.16 | % | ||||||||||||||
| Dividend payout ratio | 69.02 | % | 38.74 | % | 38.71 | % | 57.10 | % | 42.21 | % | 45.37 | % | 35.02 | % | ||||||||||||||
| Average shares outstanding - basic | 8,071,032 | 8,067,144 | 8,091,203 | 8,093,478 | 8,092,494 | 8,076,440 | 8,106,517 | |||||||||||||||||||||
| Average shares outstanding - diluted | 8,105,131 | 8,072,499 | 8,096,317 | 8,116,261 | 8,101,306 | 8,110,539 | 8,115,329 | |||||||||||||||||||||
| Period ending shares outstanding | 8,071,032 | 8,067,144 | 8,067,144 | 8,095,252 | 8,092,576 | 8,071,032 | 8,092,576 | |||||||||||||||||||||
| Selected ratios | ||||||||||||||||||||||||||||
| Return on average assets (Annualized) | 0.50 | % | 0.91 | % | 0.92 | % | 0.78 | % | 0.86 | % | 0.77 | % | 1.06 | % | ||||||||||||||
| Return on average equity (Annualized) | 4.45 | % | 8.15 | % | 8.16 | % | 7.13 | % | 7.73 | % | 6.90 | % | 9.43 | % | ||||||||||||||
| Return on average tangible common equity (1) (3) | 5.58 | % | 10.29 | % | 10.30 | % | 9.11 | % | 9.91 | % | 8.68 | % | 11.92 | % | ||||||||||||||
| Efficiency (4) | 67.93 | % | 67.97 | % | 68.68 | % | 68.99 | % | 65.65 | % | 68.19 | % | 63.10 | % | ||||||||||||||
| Equity to assets at period end | 11.34 | % | 11.31 | % | 11.32 | % | 11.28 | % | 10.80 | % | 11.34 | % | 10.80 | % | ||||||||||||||
| Noninterest expense to average assets | 0.66 | % | 0.64 | % | 0.66 | % | 0.68 | % | 0.68 | % | 1.94 | % | 2.06 | % | ||||||||||||||
| (1) See section "GAAP to Non-GAAP Reconciliations" for the reconciliation of GAAP performance measures to non-GAAP measures. |
| (2) Calculated by dividing tangible common equity by shares outstanding. |
| (3) Calculated by dividing annualized net income for each period by average tangible common equity. |
| (4) 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. |
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | ||||||||||||||||||||||
| Yields | 2024 | 2024 | 2024 | 2023 | 2023 | 2024 | 2023 | |||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||||||
| Loans receivable (1) | 6.19 | % | 6.27 | % | 6.11 | % | 6.01 | % | 5.82 | % | 6.19 | % | 5.75 | % | ||||||||||||||
| Investment securities (1) (2) | 3.59 | % | 3.59 | % | 3.52 | % | 3.52 | % | 3.51 | % | 3.57 | % | 3.54 | % | ||||||||||||||
| Interest-earning deposits with other banks | 4.27 | % | 4.59 | % | 4.88 | % | 3.71 | % | 4.13 | % | 4.58 | % | 3.85 | % | ||||||||||||||
| Total interest-earning assets | 5.84 | % | 5.92 | % | 5.77 | % | 5.64 | % | 5.49 | % | 5.84 | % | 5.41 | % | ||||||||||||||
| Deposits: | ||||||||||||||||||||||||||||
| Interest-bearing demand deposits | 2.16 | % | 1.93 | % | 1.86 | % | 1.67 | % | 1.51 | % | 1.99 | % | 1.20 | % | ||||||||||||||
| Money market deposits | 3.93 | % | 3.95 | % | 3.81 | % | 3.58 | % | 2.94 | % | 3.90 | % | 2.29 | % | ||||||||||||||
| Savings deposits | 0.71 | % | 0.64 | % | 0.58 | % | 0.59 | % | 0.58 | % | 0.64 | % | 0.80 | % | ||||||||||||||
| Certificates of deposit | 4.49 | % | 4.57 | % | 4.06 | % | 3.68 | % | 3.27 | % | 4.37 | % | 2.50 | % | ||||||||||||||
| Total interest-bearing deposits | 3.17 | % | 3.15 | % | 2.88 | % | 2.56 | % | 2.16 | % | 3.07 | % | 1.70 | % | ||||||||||||||
| Non-Deposit Funding: | ||||||||||||||||||||||||||||
| Borrowings | 5.54 | % | 5.60 | % | 5.61 | % | 5.57 | % | 5.66 | % | 5.58 | % | 5.30 | % | ||||||||||||||
| Total interest-bearing liabilities | 3.41 | % | 3.45 | % | 3.23 | % | 2.96 | % | 2.48 | % | 3.37 | % | 2.03 | % | ||||||||||||||
| Cost of deposits | 2.33 | % | 2.30 | % | 2.08 | % | 1.81 | % | 1.53 | % | 2.24 | % | 1.16 | % | ||||||||||||||
| Cost of funds | 2.58 | % | 2.61 | % | 2.42 | % | 2.18 | % | 1.80 | % | 2.54 | % | 1.42 | % | ||||||||||||||
| Net interest margin (3) | 3.46 | % | 3.51 | % | 3.54 | % | 3.63 | % | 3.82 | % | 3.50 | % | 4.09 | % | ||||||||||||||
| (1) Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were determined using an effective tax rate of 21%. |
| (2) Yield is calculated on the basis of amortized cost. |
| (3) Net interest margin represents net interest income as a percentage of average interest-earning assets. |
MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(unaudited)
| For the Three Months Ended | ||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
| Asset quality data | 2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||||||
| (Dollar amounts in thousands, unaudited) | ||||||||||||||||||||
| Nonperforming loans | $ | 30,078 | $ | 15,961 | $ | 10,831 | $ | 10,877 | $ | 7,717 | ||||||||||
| Other real estate owned | - | - | - | - | 5,792 | |||||||||||||||
| Nonperforming assets | $ | 30,078 | $ | 15,961 | $ | 10,831 | $ | 10,877 | $ | 13,509 | ||||||||||
| Allowance for credit losses | $ | 22,526 | $ | 21,795 | $ | 21,069 | $ | 21,693 | $ | 20,986 | ||||||||||
| Allowance for credit losses/total loans | 1.50 | % | 1.46 | % | 1.41 | % | 1.47 | % | 1.45 | % | ||||||||||
| Net charge-offs (recoveries): | ||||||||||||||||||||
| Quarter-to-date | $ | 1,377 | $ | (29 | ) | $ | (68 | ) | $ | (117 | ) | $ | (16 | ) | ||||||
| Year-to-date | 1,285 | (97 | ) | (68 | ) | (31 | ) | 87 | ||||||||||||
| Net charge-offs (recoveries) to average loans, annualized: | ||||||||||||||||||||
| Quarter-to-date | 0.36 | % | (0.01 | %) | (0.02 | %) | (0.03 | %) | 0.00 | % | ||||||||||
| Year-to-date | 0.11 | % | (0.01 | %) | (0.02 | %) | 0.00 | % | 0.01 | % | ||||||||||
| Nonperforming loans/total loans | 2.00 | % | 1.07 | % | 0.73 | % | 0.74 | % | 0.53 | % | ||||||||||
| Allowance for credit losses/nonperforming loans | 74.89 | % | 136.55 | % | 194.52 | % | 199.44 | % | 271.95 | % | ||||||||||
| Nonperforming assets/total assets | 1.62 | % | 0.87 | % | 0.60 | % | 0.60 | % | 0.75 | % | ||||||||||
MIDDLEFIELD BANC CORP.
GAAP to Non-GAAP Reconciliations
| Reconciliation of Common Stockholders' Equity to Tangible Common Equity | For the Three Months Ended | |||||||||||||||||||
| (Dollar amounts in thousands, unaudited) | September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
| 2024 | 2024 | 2024 | 2023 | 2023 | ||||||||||||||||
| Stockholders' equity | $ | 210,705 | $ | 206,788 | $ | 205,575 | $ | 205,681 | $ | 193,749 | ||||||||||
| Less goodwill and other intangibles | 42,225 | 42,482 | 42,740 | 42,998 | 43,103 | |||||||||||||||
| Tangible common equity | $ | 168,480 | $ | 164,306 | $ | 162,835 | $ | 162,683 | $ | 150,646 | ||||||||||
| Shares outstanding | 8,071,032 | 8,067,144 | 8,067,144 | 8,095,252 | 8,092,576 | |||||||||||||||
| Tangible book value per share | $ | 20.87 | $ | 20.37 | $ | 20.18 | $ | 20.10 | $ | 18.62 | ||||||||||
| Reconciliation of Average Equity to Return on Average Tangible Common Equity | For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | ||||||||||||||||||||||
| 2024 | 2024 | 2024 | 2023 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
| Average stockholders' equity | $ | 209,096 | $ | 205,379 | $ | 205,342 | $ | 197,208 | $ | 196,795 | $ | 206,691 | $ | 196,074 | ||||||||||||||
| Less average goodwill and other intangibles | 42,350 | 42,607 | 42,654 | 42,972 | 43,232 | 42,512 | 41,018 | |||||||||||||||||||||
| Average tangible common equity | $ | 166,746 | $ | 162,772 | $ | 162,688 | $ | 154,236 | $ | 153,563 | $ | 164,179 | $ | 155,056 | ||||||||||||||
| Net income | $ | 2,340 | $ | 4,164 | $ | 4,167 | $ | 3,543 | $ | 3,836 | $ | 10,671 | $ | 13,825 | ||||||||||||||
| Return on average tangible common equity (annualized) | 5.58 | % | 10.29 | % | 10.30 | % | 9.11 | % | 9.91 | % | 8.68 | % | 11.92 | % | ||||||||||||||
| Reconciliation of Pre-Tax Pre-Provision Income (PTPP) | For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | September 30, | September 30, | ||||||||||||||||||||||
| 2024 | 2024 | 2024 | 2023 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
| Net income | $ | 2,340 | $ | 4,164 | $ | 4,167 | $ | 3,543 | $ | 3,836 | $ | 10,671 | $ | 13,825 | ||||||||||||||
| Add income taxes | 371 | 690 | 769 | 709 | 703 | 1,830 | 2,678 | |||||||||||||||||||||
| Add provision (recovery of) for credit losses | 2,234 | 87 | (136 | ) | 554 | 1,127 | 2,185 | 2,449 | ||||||||||||||||||||
| PTPP | $ | 4,945 | $ | 4,941 | $ | 4,800 | $ | 4,806 | $ | 5,666 | $ | 14,686 | $ | 18,952 | ||||||||||||||
MIDDLEFIELD BANC CORP.
Average Balance Sheets
(Dollar amounts in thousands, unaudited)
| For the Three Months Ended | ||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||||||
| Average | Average | Average | Average | |||||||||||||||||||||
| Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost | |||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||
| Loans receivable ⁽¹⁾ | $ | 1,507,518 | $ | 23,441 | 6.19 | % | $ | 1,425,375 | $ | 20,899 | 5.82 | % | ||||||||||||
| Investment securities (1) (2) | 193,659 | 1,490 | 3.59 | % | 193,966 | 1,457 | 3.51 | % | ||||||||||||||||
| Interest-earning deposits with other banks (3) | 63,580 | 682 | 4.27 | % | 68,587 | 714 | 4.13 | % | ||||||||||||||||
| Total interest-earning assets | 1,764,757 | 25,613 | 5.84 | % | 1,687,928 | 23,070 | 5.49 | % | ||||||||||||||||
| Noninterest-earning assets | 86,733 | 88,058 | ||||||||||||||||||||||
| Total assets | $ | 1,851,490 | $ | 1,775,986 | ||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 217,124 | $ | 1,181 | 2.16 | % | $ | 256,153 | $ | 975 | 1.51 | % | ||||||||||||
| Money market deposits | 362,545 | 3,583 | 3.93 | % | 259,802 | 1,928 | 2.94 | % | ||||||||||||||||
| Savings deposits | 198,775 | 357 | 0.71 | % | 225,216 | 327 | 0.58 | % | ||||||||||||||||
| Certificates of deposit | 325,240 | 3,671 | 4.49 | % | 291,409 | 2,402 | 3.27 | % | ||||||||||||||||
| Short-term borrowings | 113,812 | 1,575 | 5.51 | % | 91,201 | 1,258 | 5.47 | % | ||||||||||||||||
| Other borrowings | 11,739 | 173 | 5.86 | % | 11,940 | 213 | 7.08 | % | ||||||||||||||||
| Total interest-bearing liabilities | 1,229,235 | 10,540 | 3.41 | % | 1,135,721 | 7,103 | 2.48 | % | ||||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||||
| Noninterest-bearing demand deposits | 396,456 | 431,775 | ||||||||||||||||||||||
| Other liabilities | 16,703 | 11,695 | ||||||||||||||||||||||
| Stockholders' equity | 209,096 | 196,795 | ||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,851,490 | $ | 1,775,986 | ||||||||||||||||||||
| Net interest income | $ | 15,073 | $ | 15,967 | ||||||||||||||||||||
| Interest rate spread (4) | 2.43 | % | 3.01 | % | ||||||||||||||||||||
| Net interest margin (5) | 3.46 | % | 3.82 | % | ||||||||||||||||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | 143.57 | % | 148.62 | % | ||||||||||||||||||||
| ⁽¹⁾ Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $281 and $270 for the three months ended September 30, 2024 and 2023, respectively. |
| (2) Yield is calculated on the basis of amortized cost. |
| (3) Includes dividends received on restricted stock. |
| (4) Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities. |
| (5) Net interest margin represents net interest income as a percentage of average interest-earning assets. |
| For the Three Months Ended | ||||||||||||||||||||||||
| September 30, | June 30, | |||||||||||||||||||||||
| 2024 | 2024 | |||||||||||||||||||||||
| Average | Average | Average | Average | |||||||||||||||||||||
| Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost | |||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||
| Loans receivable ⁽¹⁾ | $ | 1,507,518 | $ | 23,441 | 6.19 | % | $ | 1,503,440 | $ | 23,422 | 6.27 | % | ||||||||||||
| Investment securities (1) (2) | 193,659 | 1,490 | 3.59 | % | 193,688 | 1,471 | 3.59 | % | ||||||||||||||||
| Interest-earning deposits with other banks (3) | 63,580 | 682 | 4.27 | % | 61,891 | 706 | 4.59 | % | ||||||||||||||||
| Total interest-earning assets | 1,764,757 | 25,613 | 5.84 | % | 1,759,019 | 25,599 | 5.92 | % | ||||||||||||||||
| Noninterest-earning assets | 86,733 | 84,495 | ||||||||||||||||||||||
| Total assets | $ | 1,851,490 | $ | 1,843,514 | ||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 217,124 | $ | 1,181 | 2.16 | % | $ | 209,965 | $ | 1,009 | 1.93 | % | ||||||||||||
| Money market deposits | 362,545 | 3,583 | 3.93 | % | 337,937 | 3,320 | 3.95 | % | ||||||||||||||||
| Savings deposits | 198,775 | 357 | 0.71 | % | 192,577 | 305 | 0.64 | % | ||||||||||||||||
| Certificates of deposit | 325,240 | 3,671 | 4.49 | % | 333,542 | 3,789 | 4.57 | % | ||||||||||||||||
| Short-term borrowings | 113,812 | 1,575 | 5.51 | % | 138,656 | 1,920 | 5.57 | % | ||||||||||||||||
| Other borrowings | 11,739 | 173 | 5.86 | % | 11,791 | 173 | 5.90 | % | ||||||||||||||||
| Total interest-bearing liabilities | 1,229,235 | 10,540 | 3.41 | % | 1,224,468 | 10,516 | 3.45 | % | ||||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||||
| Noninterest-bearing demand deposits | 396,456 | 396,626 | ||||||||||||||||||||||
| Other liabilities | 16,703 | 17,041 | ||||||||||||||||||||||
| Stockholders' equity | 209,096 | 205,379 | ||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,851,490 | $ | 1,843,514 | ||||||||||||||||||||
| Net interest income | $ | 15,073 | $ | 15,083 | ||||||||||||||||||||
| Interest rate spread (4) | 2.43 | % | 2.47 | % | ||||||||||||||||||||
| Net interest margin (5) | 3.46 | % | 3.51 | % | ||||||||||||||||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | 143.57 | % | 143.66 | % | ||||||||||||||||||||
| (1) Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $281 and $289 for the three months ended September 30, 2024 and June 30, 2024, respectively. |
| (2) Yield is calculated on the basis of amortized cost. |
| (3) Includes dividends received on restricted stock. |
| (4) Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities. |
| (5) Net interest margin represents net interest income as a percentage of average interest-earning assets. |
| For the Nine Months Ended | ||||||||||||||||||||||||
| September 30, | September 30, | |||||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||||||
| Average | Average | Average | Average | |||||||||||||||||||||
| Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost | |||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||
| Loans receivable ⁽¹⁾ | $ | 1,495,834 | $ | 69,258 | 6.19 | % | $ | 1,395,438 | $ | 59,935 | 5.75 | % | ||||||||||||
| Investment securities (1) (2) | 193,719 | 4,400 | 3.57 | % | 194,109 | 4,353 | 3.54 | % | ||||||||||||||||
| Interest-earning deposits with other banks (3) | 63,203 | 2,166 | 4.58 | % | 66,730 | 1,924 | 3.85 | % | ||||||||||||||||
| Total interest-earning assets | 1,752,756 | 75,824 | 5.84 | % | 1,656,277 | 66,212 | 5.41 | % | ||||||||||||||||
| Noninterest-earning assets | 86,473 | 89,567 | ||||||||||||||||||||||
| Total assets | $ | 1,839,229 | $ | 1,745,844 | ||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 212,699 | $ | 3,167 | 1.99 | % | $ | 216,044 | $ | 1,934 | 1.20 | % | ||||||||||||
| Money market deposits | 332,987 | 9,730 | 3.90 | % | 234,236 | 4,005 | 2.29 | % | ||||||||||||||||
| Savings deposits | 197,477 | 951 | 0.64 | % | 267,951 | 1,608 | 0.80 | % | ||||||||||||||||
| Certificates of deposit | 330,884 | 10,833 | 4.37 | % | 263,448 | 4,925 | 2.50 | % | ||||||||||||||||
| Short-term borrowings | 132,275 | 5,488 | 5.54 | % | 86,670 | 3,373 | 5.20 | % | ||||||||||||||||
| Other borrowings | 11,790 | 530 | 6.00 | % | 11,990 | 539 | 6.01 | % | ||||||||||||||||
| Total interest-bearing liabilities | 1,218,112 | 30,699 | 3.37 | % | 1,080,339 | 16,384 | 2.03 | % | ||||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||||
| Noninterest-bearing demand deposits | 397,764 | 458,086 | ||||||||||||||||||||||
| Other liabilities | 16,662 | 11,345 | ||||||||||||||||||||||
| Stockholders' equity | 206,691 | 196,074 | ||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,839,229 | $ | 1,745,844 | ||||||||||||||||||||
| Net interest income | $ | 45,125 | $ | 49,828 | ||||||||||||||||||||
| Interest rate spread (4) | 2.47 | % | 3.38 | % | ||||||||||||||||||||
| Net interest margin (5) | 3.50 | % | 4.09 | % | ||||||||||||||||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | 143.89 | % | 153.31 | % | ||||||||||||||||||||
| (1) Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $851 and $824 for the nine months ended September 30, 2024 and September 30, 2023, respectively. |
| (2) Yield is calculated on the basis of amortized cost. |
| (3) Includes dividends received on restricted stock. |
| (4) Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities. |
| (5) Net interest margin represents net interest income as a percentage of average interest-earning assets. |
