Middlefield Banc Corp Reports 2023 First Half Financial Results.

MIDDLEFIELD, Ohio: Middlefield Banc Corp. (NASDAQ: MBCN) reported financial results for the 2023 first half and second quarter ended June 30, 2023.

2023 First Half Financial Highlights Include (on a year-over-year basis unless noted):

Net income increased 26.1% to a record $10.0 million

Earnings were $1.23 per diluted share compared to $1.35 per diluted share, reflecting a 38.4% increase in the average diluted shares outstanding related to the Liberty Bancshares, Inc. merger

Pre-tax, pre-provision net income increased 40.1% to a record $13.3 million

Net interest margin improved by 39 basis points to 4.30%, compared to 3.91%, and reflects five consecutive quarters of a net interest margin above 4%

Total loans were a record $1.41 billion, compared to $1.35 billion at December 31, 2022

Total deposits were a record $1.43 billion, compared to $1.40 billion at December 31, 2022

Uninsured deposits to total assets were approximately 20%, and approximately 25% of total deposits at June 30, 2023

Return on average assets was 1.16%, compared to 1.21%

Return on average equity was 9.64%, compared to 11.49%

Return on average tangible common equity(1) was 11.92%, compared to 13.03%

Strong asset quality with nonperforming assets to total assets of 0.74%, compared to 0.89%

Allowance for credit losses was 1.46% of total loans, compared to 1.49%

Equity to assets increased to 11.26% from 9.91%

"I'm proud to report that Middlefield achieved record second-quarter and year-to-date results, including net income, assets, loans, and deposits. These results are especially encouraging as we successfully navigate the rapid rise in interest rates over the past 12 months, significant competition for deposits, and an increasingly fluid business environment. Our ability to withstand these macro-level headwinds is reflected in our strong balance sheet, robust asset quality, and diverse core deposit base, as well as the benefits and added scale of the Liberty Bancshares, Inc. merger. Most importantly, our success through the first six months of 2023 is a direct result of the dedication and expertise of our team members and the value we provide our local communities," stated James R. Heslop, II, Chief Executive Officer.

"As we look towards the second half of 2023, we expect higher rates and competition for deposits will increase our cost of funds in the coming quarters. Despite these trends, we believe our compelling net interest margin and larger loan portfolio will support...