Middlefield Banc Corp. Reports 2025 Six-Month Financial Results

MIDDLEFIELD, Ohio, July 22, 2025 (GLOBE NEWSWIRE) -- Middlefield Banc Corp. (NASDAQ: MBCN) today reported financial results for the six months ended June 30, 2025.

2025 Second-Quarter Financial Highlights (on a year-over-year basis):

	●	Earnings per share increased 46.2% year-over-year to $0.76 per diluted share
	●	Asset quality improved from the 2024 fourth quarter with nonperforming assets to total assets decreasing by 32 basis points to 1.30%
	●	Net interest margin expanded 37 basis points to 3.88% and increased 19 basis points from the 2025 first quarter
	●	Total loans increased $84.2 million, or 5.6% to a record $1.58 billion
	●	Total assets increased $96.2 million, or 5.3% to a record $1.92 billion
	●	Book value increased 4.3% to $26.74 from $25.63 per share, while tangible book value⁽¹⁾ increased 6.1% to $21.60 from $20.37 per share

⁽¹⁾ See non-GAAP reconciliation under the section “GAAP to Non-GAAP Reconciliations”

“The second quarter of 2025 was another strong quarter of growth, profitability and value creation for Middlefield,” stated Ronald L. Zimmerly, Jr., President and Chief Executive Officer. “Total loans have increased at an 8.2% annualized rate since the beginning of the year to a record $1.58 billion, asset quality continued to improve sequentially, and our net interest margin for the second quarter of 2025 expanded 37 basis points year-over-year to 3.88%. These results led to strong growth in profitability during the quarter. Net income also benefited from a $1.2 million net gain on the exchange of real estate associated with the relocation of our Westerville, Ohio branch. Relocating our Westerville office is a great opportunity, supported by favorable demographics and underscores our multi-year strategy to expand our presence in the Central Ohio region. We expect our new Westerville branch to open in the second half of 2025.”

“I am pleased by the strong start to 2025 and the direction we are headed. We remain focused on investing in our platform, which includes upgrades to our technology infrastructure, adding new, experienced commercial bankers, and pursuing opportunities to expand Middlefield across our compelling Ohio markets. As a result of these efforts and the contributions of our high-performing team, we expect additional loan and core deposit growth to benefit profitability throughout the remainder of 2025,” concluded Mr. Zimmerly.

Income Statement
Net interest income for the 2025 second quarter increased 15.6% to $17.4 million, compared to $15.1 million for the 2024 second quarter. The net interest margin for the 2025 second quarter was 3.88%, compared to 3.51% for the same period of 2024. Net interest income for the six months ended June 30, 2025, increased 11.6% to $33.5 million, compared to $30.1 million for the same period last year. The increase was primarily due to strong loan growth, a decrease in FHLB advances, and an overall decline in rates for deposits. Net interest margin for the six months ended June 30, 2025, was 3.79%, compared to 3.53% last year.

Noninterest income for the 2025 second quarter was $3.1 million, compared to $1.8 million for the same period the previous year. For the six months ended June 30, 2025, noninterest income increased $1.5 million to $5.0 million, compared to $3.6 million for the same period in 2024. In April 2025, Middlefield completed an exchange of real estate with the City of Westerville, Ohio for a parcel of land that had a fair value of $1.5 million. In exchange, Middlefield transferred land and a building with related furnishings associated with its current branch located in Westerville, Ohio. The transferred branch had a net book value of $221,000. The exchange of real estate transaction resulted in a one-time, non-cash gain of $1.2 million.

For the 2025 second quarter, noninterest expense was $13.7 million, compared to $11.9 million for the 2024 second quarter. Noninterest expense for the six months ended June 30, 2025, was $25.8 million, compared to $23.9 million for the same period in 2024. Noninterest expense for the 2025 second quarter included a $700,000 loss associated with recording a separate property located in Westerville, Ohio as held for sale.

Net income for the 2025 second quarter was $6.2 million, or $0.76 per diluted share, compared to $4.2 million, or $0.52 per diluted share, for the same period last year. Net income for the six months ended June 30, 2025, was $11.0 million, or $1.36 per diluted share, compared to $8.3 million, or $1.03 per diluted share, for the same period last year.

For the 2025 second quarter, pre-tax, pre-provision net income was $6.9 million, compared to $4.9 million for the same period of 2024. For the six months ended June 30, 2025, pre-tax, pre-provision net income was $12.7 million, compared to $9.7 million for the same period last year. (See non-GAAP reconciliation under the section “GAAP to Non-GAAP Reconciliations”.)

Balance Sheet
Total assets at June 30, 2025, increased 5.3% to a record $1.92 billion, compared to $1.83 billion at June 30, 2024. Total loans at June 30, 2025, were a record $1.58 billion, compared to $1.50 billion at June 30, 2024. The 5.6% year-over-year increase in total loans was primarily due to higher home equity lines of credit, commercial and industrial loans, residential real estate loans, non-owner occupied, and owner occupied loans, partially offset by a reduction in construction and other loans and multifamily loans.

The investment securities available-for-sale portfolio was $161.1 million at June 30, 2025, compared with $166.4 million at June 30, 2024.

Total liabilities at June 30, 2025, increased 5.4% to $1.71 billion, compared to $1.62 billion at June 30, 2024. Total deposits at June 30, 2025, were $1.59 billion, compared to $1.47 billion at June 30, 2024. The 8.4% year-over-year increase in deposits was primarily due to growth in money market and interest-bearing demand deposits, partially offset by declines in savings deposit accounts. Noninterest-bearing demand deposits were 24.2% of total deposits at June 30, 2025, compared to 26.3% at June 30, 2024. At June 30, 2025, the Company had brokered deposits of $165.1 million, compared to $86.5 million at June 30, 2024.

Michael C. Ranttila, Chief Financial Officer, stated, “Middlefield’s highly profitable financial model, disciplined loan pricing, and strong liquidity levels provides us with the flexibility to support both loan and operational growth. We continue to monitor our funding mix to support our loan portfolio at a reasonable cost, and such actions contributed to a seven-basis point reduction in our cost of funds since the beginning of the year. Throughout the second half of 2025, we are focused on growing core deposits by improving the mix of commercial and industrial loans and growing treasury management relationships.”

Middlefield's CRE portfolio included the following categories at June 30, 2025:

(Dollar amounts in thousands)	Balance		Percent of CRE Portfolio			Percent of Loan Portfolio			Weighted Average Loan-to-Value

Multi-Family	$	79,497		11.7	%		5.0	%		64.7	%
Owner Occupied
Real Estate and Rental and Leasing		56,806		8.3	%		3.6	%		55.6	%
Other Services (except Public Administration)		40,734		6.0	%		2.6	%		58.2	%
Manufacturing		17,919		2.6	%		1.1	%		44.4	%
Agriculture, Forestry, Fishing and Hunting		12,318		1.8	%		0.8	%		36.3	%
Educational Services		11,844		1.7	%		0.7	%		50.1	%
Other		57,024		8.3	%		3.6	%		54.1	%
Total Owner Occupied	$	196,645		28.7	%		12.4	%
Non-Owner Occupied
Real Estate and Rental and Leasing		333,645		49.0	%		21.1	%		54.8	%
Accommodation and Food Services		40,430		5.9	%		2.6	%		57.0	%
Health Care and Social Assistance		19,456		2.9	%		1.2	%		65.9	%
Manufacturing		7,412		1.1	%		0.5	%		46.7	%
Other		4,089		0.7	%		0.3	%		76.4	%
Total Non-Owner Occupied	$	405,032		59.6	%		25.7	%
Total CRE	$	681,174		100.0	%		43.1	%

Stockholders' Equity and Dividends
At June 30, 2025, stockholders' equity was $216.1 million, compared to $206.8 million at June 30, 2024. The 4.5% year-over-year increase in stockholders' equity was primarily from higher retained earnings, partially offset by an increase in the unrealized losses on the available-for-sale investment portfolio. On a per-share basis, shareholders' equity at June 30, 2025, was $26.74, compared to $25.63 at June 30, 2024.

At June 30, 2025, tangible stockholders' equity⁽¹⁾ was $174.6 million, compared to $164.3 million at June 30, 2024. On a per-share basis, tangible stockholders' equity⁽¹⁾ was $21.60 at June 30, 2025, compared to $20.37 at June 30, 2024. ⁽¹⁾See non-GAAP reconciliation under the section “GAAP to Non-GAAP Reconciliations”.

For the six months ended June 30, 2025, the Company declared cash dividends of $0.42 per share, totaling $3.4 million. Beginning in the first quarter of 2025, the Company increased the quarterly cash dividend by $0.01, or 5% from the previous year's $0.20 per share quarterly cash dividend.

For the six months ended June 30, 2025, the Company did not repurchase any shares of its common stock.

At June 30, 2025, the Company's equity-to-assets ratio was 11.23%, compared to 11.31% at June 30, 2024.

Asset Quality
For the six months ended June 30, 2025, the Company recorded a recovery of credit losses of $411,000, compared to a recovery of credit losses of $49,000 for the same period of 2024.

Net recoveries were $227,000, or (0.03%) of average loans, annualized, for the six months ended June 30, 2025, compared to net recoveries of $97,000, or (0.01%) of average loans, annualized, for the same period of 2024.

Nonperforming loans at June 30, 2025, were $25.1 million, compared to $16.0 million at June 30, 2024. The year-over-year increase in nonperforming assets was primarily due to a $12.0 million loan moved to nonaccrual in the 2024 third quarter. The allowance for credit losses at June 30, 2025, stood at $22.3 million, or 1.41% of total loans, compared to $21.8 million, or 1.46% of total loans at June 30, 2024. The increase in the allowance for credit losses was mainly from changes in projected loss drivers, prepayment assumptions, curtailment expectations over the reasonable and supportable forecast period, and geographic footprint of unemployment data, as well as an overall increase in total loans.

Mr. Ranttila continued, “Asset quality demonstrates the success of our disciplined approach to credit quality and risk management, as nonperforming assets to total assets have improved to 1.30% at June 30, 2025, compared to 1.56% at March 31, 2025, and 1.62% at December 31, 2024. Over the past six months, non-performing assets declined by $4.9 million from $30.0 million at December 31, 2024, primarily as a result of the successful payoff of one previously disclosed non-accruing loan. In addition, reductions in the reserve against individually analyzed loans as well as the reserve for unfunded commitments drove a $506,000 recovery for credit losses in the second quarter. We continue to expect stable economic activity across our Central, Western and Northeast Ohio markets that will support loan demand and asset quality throughout 2025.”

About Middlefield Banc Corp.
Middlefield Banc Corp., headquartered in Middlefield, Ohio, is the Bank holding Company of The Middlefield Banking Company, with total assets of $1.92 billion at June 30, 2025. The Bank operates 21 full-service banking centers and an LPL Financial® brokerage office serving Ada, Beachwood, Bellefontaine, Chardon, Cortland, Dublin, Garrettsville, Kenton, Mantua, Marysville, Middlefield, Newbury, Orwell, Plain City, Powell, Solon, Sunbury, Twinsburg, and Westerville. The Bank also operates a Loan Production Office in Mentor, Ohio.

Additional information is available at www.middlefieldbank.bank

NON-GAAP FINANCIAL 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.

MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(Dollar amounts in thousands, unaudited)

	June 30,		March 31,		December 31,		September 30,		June 30,
Balance Sheets (period end)	2025		2025		2024		2024		2024
ASSETS
Cash and due from banks	$	59,145	$	56,150	$	46,037	$	61,851	$	50,496
Federal funds sold		13,701		10,720		9,755		12,022		1,762
Cash and cash equivalents		72,846		66,870		55,792		73,873		52,258
Investment securities available for sale, at fair value		161,116		165,014		165,802		169,895		166,424
Other investments		1,014		1,021		855		895		881
Loans held for sale		152		-		-		249		-
Loans:
Commercial real estate:
Owner occupied		196,645		185,412		181,447		187,313		182,809
Non-owner occupied		405,032		413,621		412,291		407,159		385,648
Multifamily		79,497		88,737		89,849		94,798		86,951
Residential real estate		357,217		351,274		353,442		345,748		337,121
Commercial and industrial		257,519		235,547		229,034		213,172		234,702
Home equity lines of credit		156,297		147,154		143,379		137,761		131,047
Construction and other		123,531		122,653		103,608		111,550		132,530
Consumer installment		6,187		5,951		6,564		7,030		6,896
Total loans		1,581,925		1,550,349		1,519,614		1,504,531		1,497,704
Less allowance for credit losses		22,335		22,401		22,447		22,526		21,795
Net loans		1,559,590		1,527,948		1,497,167		1,482,005		1,475,909
Premises and equipment, net		20,304		20,494		20,565		20,528		20,744
Premises and equipment held for sale		1,015		-		-		-		-
Goodwill		36,356		36,356		36,356		36,356		36,356
Core deposit intangibles		5,112		5,362		5,611		5,869		6,126
Bank-owned life insurance		35,102		34,866		35,259		35,049		34,802
Accrued interest receivable and other assets		31,762		30,425		35,952		32,916		34,686
TOTAL ASSETS	$	1,924,369	$	1,888,356	$	1,853,359	$	1,857,635	$	1,828,186

	June 30,			March 31,			December 31,			September 30,			June 30,
	2025			2025			2024			2024			2024
LIABILITIES
Deposits:
Noninterest-bearing demand	$	386,248		$	369,492		$	377,875		$	390,933		$	387,024
Interest-bearing demand		221,146			222,953			208,291			218,002			206,542
Money market		466,935			481,664			414,074			376,619			355,630
Savings		184,534			189,943			197,749			199,984			192,472
Time		334,755			275,673			247,704			327,231			327,876
Total deposits		1,593,618			1,539,725			1,445,693			1,512,769			1,469,544
Federal Home Loan Bank advances		89,000			110,000			172,400			106,000			125,000
Other borrowings		11,557			11,609			11,660			11,711			11,762
Accrued interest payable and other liabilities		14,142			13,229			13,044			16,450			15,092
TOTAL LIABILITIES		1,708,317			1,674,563			1,642,797			1,646,930			1,621,398
STOCKHOLDERS' EQUITY
Common stock, no par value; 25,000,000 shares authorized, 9,960,503 shares issued, 8,081,193 shares outstanding as of June 30, 2025		162,195			162,195			161,999			161,916			161,823
Additional paid-in capital		811			515			246			108			-
Retained earnings		116,892			112,432			109,299			106,067			105,342
Accumulated other comprehensive loss		(22,937	)		(20,440	)		(20,073	)		(16,477	)		(19,468	)
Treasury stock, at cost; 1,879,310 shares as of June 30, 2025		(40,909	)		(40,909	)		(40,909	)		(40,909	)		(40,909	)
TOTAL STOCKHOLDERS' EQUITY		216,052			213,793			210,562			210,705			206,788

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,924,369		$	1,888,356		$	1,853,359		$	1,857,635		$	1,828,186

MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(Dollar amounts in thousands, unaudited)

	For the Three Months Ended														For the Six Months Ended
	June 30,			March 31,			December 31,			September 30,		June 30,			June 30,			June 30,
Statements of Income	2025			2025			2024			2024		2024			2025			2024

INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$	25,122		$	23,387		$	23,308		$	23,441	$	23,422		$	48,509		$	45,817
Interest-earning deposits in other institutions		325			291			320			348		386			616			823
Federal funds sold		120			155			151			143		122			275			274
Investment securities:
Taxable interest		526			530			528			528		505			1,056			972
Tax-exempt interest		960			960			961			962		966			1,920			1,938
Dividends on stock		183			150			170			191		198			333			387
Total interest and dividend income		27,236			25,473			25,438			25,613		25,599			52,709			50,211
INTEREST EXPENSE
Deposits		8,789			7,885			8,582			8,792		8,423			16,674			15,889
Short-term borrowings		870			1,347			1,128			1,575		1,920			2,217			3,913
Other borrowings		140			143			173			173		173			283			357
Total interest expense		9,799			9,375			9,883			10,540		10,516			19,174			20,159
NET INTEREST INCOME		17,437			16,098			15,555			15,073		15,083			33,535			30,052
Provision for (recovery of) credit losses		(506	)		95			(177	)		2,234		87			(411	)		(49	)
NET INTEREST INCOME AFTER PROVISION
FOR (RECOVERY OF) CREDIT LOSSES		17,943			16,003			15,732			12,839		14,996			33,946			30,101
NONINTEREST INCOME
Service charges on deposit accounts		1,061			989			1,068			959		971			2,050			1,880
Gain (Loss) on equity securities		(7	)		(34	)		56			14		(27	)		(41	)		(79	)
Earnings on bank-owned life insurance		230			493			230			246		227			723			454
Gain on sale of loans		39			24			64			56		69			63			79
Revenue from investment services		310			268			237			206		269			578			473
Gain on exchange of real estate		1,229			-			-			-		-			1,229			-
Gross rental income		-			-			-			-		-			-			67
Other income		216			204			259			262		251			420			682
Total noninterest income		3,078			1,944			1,914			1,743		1,760			5,022			3,556

NONINTEREST EXPENSE
Salaries and employee benefits		6,734			6,557			5,996			6,201		6,111			13,291			12,444
Occupancy expense		667			687			596			627		601			1,354			1,153
Equipment expense		248			225			221			203		261			473			501
Data processing costs		1,273			1,271			1,174			1,214		1,135			2,544			2,417
Ohio state franchise tax		399			399			390			399		397			798			794
Federal deposit insurance expense		267			267			293			255		256			534			507
Professional fees		521			598			611			539		557			1,119			1,115
Advertising expense		451			364			371			283		508			815			927
Software amortization expense		95			90			83			74		21			185			43
Core deposit intangible amortization		250			249			258			257		258			499			516
Loss on premises and equipment held for sale		693			-			-			-		-			693			-
Gross other real estate owned expenses		-			-			-			-		-			-			99
Other expense		2,053			1,486			1,810			1,819		1,797			3,539			3,351
Total noninterest expense		13,651			12,193			11,803			11,871		11,902			25,844			23,867

Income before income taxes		7,370			5,754			5,843			2,711		4,854			13,124			9,790
Income taxes		1,213			924			995			371		690			2,137			1,459

NET INCOME	$	6,157		$	4,830		$	4,848		$	2,340	$	4,164		$	10,987		$	8,331

PTPP ⁽¹⁾	$	6,864		$	5,849		$	5,666		$	4,945	$	4,941		$	12,713		$	9,741

⁽¹⁾ See section “GAAP to Non-GAAP Reconciliations” for the reconciliation of GAAP performance measures to 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															For the Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
	2025			2025			2024			2024			2024			2025			2024
Per common share data
Net income per common share - basic	$	0.76		$	0.60		$	0.60		$	0.29		$	0.52		$	1.36		$	1.04
Net income per common share - diluted	$	0.76		$	0.60		$	0.60		$	0.29		$	0.52		$	1.36		$	1.03
Dividends declared per share	$	0.21		$	0.21		$	0.20		$	0.20		$	0.20		$	0.42		$	0.40
Book value per share (period end)	$	26.74		$	26.46		$	26.08		$	26.11		$	25.63		$	26.74		$	25.63
Tangible book value per share (period end) (1) (2)	$	21.60		$	21.29		$	20.88		$	20.87		$	20.37		$	21.60		$	20.37
Dividends declared	$	1,697		$	1,697		$	1,616		$	1,615		$	1,613		$	3,394		$	3,226
Dividend yield		2.80	%		3.05	%		2.84	%		2.76	%		3.34	%		2.81	%		3.34	%
Dividend payout ratio		27.56	%		35.13	%		33.33	%		69.02	%		38.74	%		30.89	%		38.72	%
Average shares outstanding - basic		8,081,193			8,078,805			8,071,905			8,071,032			8,067,144			8,080,006			8,079,174
Average shares outstanding - diluted		8,113,572			8,097,545			8,092,357			8,086,872			8,072,499			8,107,066			8,084,529
Period ending shares outstanding		8,081,193			8,081,193			8,073,708			8,071,032			8,067,144			8,081,193			8,067,144

Selected ratios
Return on average assets (Annualized)		1.29	%		1.04	%		1.04	%		0.50	%		0.91	%		1.17	%		0.91	%
Return on average equity (Annualized)		11.53	%		9.22	%		9.19	%		4.45	%		8.15	%		10.39	%		8.16	%
Return on average tangible common equity ^{(1) (3)}		14.31	%		11.48	%		11.50	%		5.58	%		10.29	%		12.92	%		10.30	%
Efficiency (4)		64.49	%		65.22	%		65.05	%		67.93	%		67.97	%		64.83	%		68.32	%
Equity to assets at period end		11.23	%		11.32	%		11.36	%		11.34	%		11.31	%		11.23	%		11.31	%
Noninterest expense to average assets		0.72	%		0.65	%		0.63	%		0.66	%		0.64	%		1.36	%		1.30	%

⁽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 Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
Yields	2025			2025			2024			2024			2024			2025			2024
Interest-earning assets:
Loans receivable ⁽¹⁾		6.40	%		6.17	%		6.12	%		6.19	%		6.27	%		6.29	%		6.19	%
Investment securities ^{(1) (2)}		3.64	%		3.69	%		3.63	%		3.62	%		3.59	%		3.67	%		3.56	%
Interest-earning deposits with other banks		4.13	%		3.57	%		4.23	%		4.27	%		4.59	%		3.84	%		4.74	%
Total interest-earning assets		6.03	%		5.81	%		5.78	%		5.84	%		5.92	%		5.92	%		5.85	%
Deposits:
Interest-bearing demand deposits		2.49	%		2.13	%		2.07	%		2.16	%		1.93	%		2.31	%		1.90	%
Money market deposits		3.53	%		3.38	%		3.81	%		3.93	%		3.95	%		3.46	%		3.88	%
Savings deposits		0.86	%		0.82	%		0.75	%		0.71	%		0.64	%		0.84	%		0.61	%
Certificates of deposit		3.66	%		3.93	%		4.21	%		4.49	%		4.57	%		3.79	%		4.32	%
Total interest-bearing deposits		2.95	%		2.82	%		3.05	%		3.17	%		3.15	%		2.89	%		3.02	%
Non-Deposit Funding:
Borrowings		4.54	%		4.58	%		4.93	%		5.54	%		5.60	%		4.56	%		5.60	%
Total interest-bearing liabilities		3.06	%		3.01	%		3.21	%		3.41	%		3.45	%		3.04	%		3.34	%
Cost of deposits		2.21	%		2.10	%		2.24	%		2.33	%		2.30	%		2.16	%		2.19	%
Cost of funds		2.34	%		2.30	%		2.41	%		2.58	%		2.61	%		2.32	%		2.52	%
Net interest margin ⁽³⁾		3.88	%		3.69	%		3.56	%		3.46	%		3.51	%		3.79	%		3.53	%

⁽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
	June 30,			March 31,			December 31,			September 30,			June 30,
Asset quality data	2025			2025			2024			2024			2024
(Dollar amounts in thousands, unaudited)
Nonperforming assets⁽¹⁾	$	25,052		$	29,550		$	29,984		$	30,078		$	15,961

Allowance for credit losses	$	22,335		$	22,401		$	22,447		$	22,526		$	21,795
Allowance for credit losses/total loans		1.41	%		1.44	%		1.48	%		1.50	%		1.46	%
Net charge-offs (recoveries):
Quarter-to-date	$	(18	)	$	(209	)	$	151		$	1,382		$	(29	)
Year-to-date		(227	)		(209	)		1,436			1,285			(97	)
Net charge-offs (recoveries) to average loans, annualized:
Quarter-to-date		(0.00	%)		(0.06	%)		0.04	%		0.36	%		(0.01	%)
Year-to-date		(0.03	%)		(0.06	%)		0.10	%		0.11	%		(0.01	%)

Nonperforming loans/total loans		1.58	%		1.91	%		1.97	%		2.00	%		1.07	%
Allowance for credit losses/nonperforming loans		89.15	%		75.81	%		74.86	%		74.89	%		136.55	%
Nonperforming assets/total assets		1.30	%		1.56	%		1.62	%		1.62	%		0.87	%

(1) Nonperforming assets consist of nonperforming loans.

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)	June 30,		March 31,		December 31,		September 30,		June 30,
	2025		2025		2024		2024		2024

Stockholders' equity	$	216,052	$	213,793	$	210,562	$	210,705	$	206,788
Less goodwill and other intangibles		41,468		41,718		41,967		42,225		42,482
Tangible common equity	$	174,584	$	172,075	$	168,595	$	168,480	$	164,306

Shares outstanding		8,081,193		8,081,193		8,073,708		8,071,032		8,067,144
Tangible book value per share	$	21.60	$	21.29	$	20.88	$	20.87	$	20.37

Reconciliation of Average Equity to Return on Average Tangible Common Equity	For the Three Months Ended															For the Six Months Ended

	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
	2025			2025			2024			2024			2024			2025			2024

Average stockholders' equity	$	214,144		$	212,465		$	209,864		$	209,096		$	205,379		$	213,235		$	205,330
Less average goodwill and other intangibles		41,589			41,839			42,092			42,350			42,607			41,714			42,609
Average tangible common equity	$	172,555		$	170,626		$	167,772		$	166,746		$	162,772		$	171,521		$	162,721

Net income	$	6,157		$	4,830		$	4,848		$	2,340		$	4,164		$	10,987		$	8,331
Return on average tangible common equity (annualized)		14.31	%		11.48	%		11.50	%		5.58	%		10.29	%		12.92	%		10.30	%

Reconciliation of Pre-Tax Pre-Provision Income (PTPP)	For the Three Months Ended												For the Six Months Ended

	June 30,			March 31,		December 31,			September 30,		June 30,		June 30,			June 30,
	2025			2025		2024			2024		2024		2025			2024

Net income	$	6,157		$	4,830	$	4,848		$	2,340	$	4,164	$	10,987		$	8,331
Add income taxes		1,213			924		995			371		690		2,137			1,459
Add provision for (recovery of) credit losses		(506	)		95		(177	)		2,234		87		(411	)		(49	)
PTPP	$	6,864		$	5,849	$	5,666		$	4,945	$	4,941	$	12,713		$	9,741

MIDDLEFIELD BANC CORP.
Average Balance Sheets
(Dollar amounts in thousands, unaudited)

	For the Three Months Ended
	June 30,							June 30,
	2025							2024
	Average				Average			Average				Average
	Balance		Interest		Yield/Cost			Balance		Interest		Yield/Cost
Interest-earning assets:
Loans receivable ⁽¹⁾	$	1,576,050	$	25,122		6.40	%	$	1,503,440	$	23,422		6.27	%
Investment securities (1) (2)		191,619		1,486		3.64	%		191,752		1,471		3.62	%
Interest-earning deposits with other banks (3)		61,012		628		4.13	%		61,891		706		4.59	%
Total interest-earning assets		1,828,681		27,236		6.03	%		1,757,083		25,599		5.93	%
Noninterest-earning assets		79,414							86,431
Total assets	$	1,908,095						$	1,843,514
Interest-bearing liabilities:
Interest-bearing demand deposits	$	217,859	$	1,353		2.49	%	$	209,965	$	1,009		1.93	%
Money market deposits		489,525		4,313		3.53	%		337,937		3,320		3.95	%
Savings deposits		188,999		404		0.86	%		192,577		305		0.64	%
Certificates of deposit		297,727		2,719		3.66	%		333,542		3,789		4.57	%
Short-term borrowings		77,666		870		4.49	%		138,656		1,920		5.57	%
Other borrowings		11,588		140		4.85	%		11,791		173		5.90	%
Total interest-bearing liabilities		1,283,364		9,799		3.06	%		1,224,468		10,516		3.45	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		397,493							396,626
Other liabilities		13,094							17,042
Stockholders' equity		214,144							205,379
Total liabilities and stockholders' equity	$	1,908,095						$	1,843,514
Net interest income			$	17,437						$	15,083
Interest rate spread (4)						2.97	%						2.48	%
Net interest margin (5)						3.88	%						3.52	%
Ratio of average interest-earning assets to average interest-bearing liabilities						142.49	%						143.50	%

⁽¹⁾ Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $266 and $289 for the three months ended June 30, 2025 and 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 Three Months Ended
	June 30,							March 31,
	2025							2025
	Average				Average			Average				Average
	Balance		Interest		Yield/Cost			Balance		Interest		Yield/Cost
Interest-earning assets:
Loans receivable ⁽¹⁾	$	1,576,050	$	25,122		6.40	%	$	1,537,337	$	23,387		6.17	%
Investment securities (1) (2)		191,619		1,486		3.64	%		191,996		1,490		3.69	%
Interest-earning deposits with other banks (3)		61,012		628		4.13	%		67,661		596		3.57	%
Total interest-earning assets		1,828,681		27,236		6.03	%		1,796,994		25,473		5.81	%
Noninterest-earning assets		79,414							84,542
Total assets	$	1,908,095						$	1,881,536
Interest-bearing liabilities:
Interest-bearing demand deposits	$	217,859	$	1,353		2.49	%	$	220,192	$	1,154		2.13	%
Money market deposits		489,525		4,313		3.53	%		458,446		3,816		3.38	%
Savings deposits		188,999		404		0.86	%		192,931		388		0.82	%
Certificates of deposit		297,727		2,719		3.66	%		261,006		2,527		3.93	%
Short-term borrowings		77,666		870		4.49	%		120,238		1,347		4.54	%
Other borrowings		11,588		140		4.85	%		11,639		143		4.98	%
Total interest-bearing liabilities		1,283,364		9,799		3.06	%		1,264,452		9,375		3.01	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		397,493							390,354
Other liabilities		13,094							14,265
Stockholders' equity		214,144							212,465
Total liabilities and stockholders' equity	$	1,908,095						$	1,881,536
Net interest income			$	17,437						$	16,098
Interest rate spread (4)						2.97	%						2.80	%
Net interest margin (5)						3.88	%						3.69	%
Ratio of average interest-earning assets to average interest-bearing liabilities						142.49	%						142.12	%

⁽¹⁾ Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $266 and $272 for the three months ended June 30, 2025 and March 31, 2025, 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 Six Months Ended
	June 30,							June 30,
	2025							2024
	Average				Average			Average				Average
	Balance		Interest		Yield/Cost			Balance		Interest		Yield/Cost
Interest-earning assets:
Loans receivable ⁽¹⁾	$	1,556,693	$	48,509		6.29	%	$	1,489,992	$	45,817		6.19	%
Investment securities (1) (2)		191,807		2,976		3.67	%		191,801		2,910		3.59	%
Interest-earning deposits with other banks (3)		64,336		1,224		3.84	%		63,015		1,484		4.74	%
Total interest-earning assets		1,812,836		52,709		5.92	%		1,744,808		50,211		5.85	%
Noninterest-earning assets		81,979							88,291
Total assets	$	1,894,815						$	1,833,099
Interest-bearing liabilities:
Interest-bearing demand deposits	$	219,026	$	2,506		2.31	%	$	210,487	$	1,986		1.90	%
Money market deposits		473,985		8,130		3.46	%		318,208		6,147		3.88	%
Savings deposits		190,965		792		0.84	%		196,828		594		0.61	%
Certificates of deposit		279,366		5,246		3.79	%		333,706		7,162		4.32	%
Short-term borrowings		98,952		2,217		4.52	%		141,507		3,913		5.56	%
Other borrowings		11,614		283		4.91	%		11,815		357		6.08	%
Total interest-bearing liabilities		1,273,908		19,174		3.04	%		1,212,551		20,159		3.34	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		393,923							398,417
Other liabilities		13,749							16,801
Stockholders' equity		213,235							205,330
Total liabilities and stockholders' equity	$	1,894,815						$	1,833,099
Net interest income			$	33,535						$	30,052
Interest rate spread (4)						2.88	%						2.51	%
Net interest margin (5)						3.79	%						3.53	%
Ratio of average interest-earning assets to average interest-bearing liabilities						142.31	%						143.90	%

⁽¹⁾ Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $538 and $570 for the six months ended June 30, 2025 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.


Company Contact:	Investor and Media Contact:
Ronald L. Zimmerly, Jr. President and Chief Executive Officer Middlefield Banc Corp. (419) 673-1217 rzimmerly@middlefieldbank.com	Andrew M. Berger Managing Director SM Berger & Company, Inc. (216) 464-6400 andrew@smberger.com

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