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

Middlefield Banc Corp. Reports 2022 First Quarter Financial Results