Middlefield Banc Corp. Reports 2025 Nine-Month Financial Results

Rhea-AI Summary

Middlefield Banc Corp (NASDAQ: MBCN) reported results for the nine months ended September 30, 2025, showing stronger profitability, asset growth and stable credit metrics. Key 2025 third-quarter highlights include diluted EPS of $0.65, pre-tax, pre-provision earnings up 37.3% to $6.8 million, net interest margin of 3.79%, and record total loans of $1.61 billion and total assets of $1.98 billion. Year-to-date diluted EPS reached $2.01 and book value rose to $27.71 per share. Dividend payments totaled $0.63 per share for the nine months. Management noted continued loan growth, margin expansion, a one-time $1.2 million real estate gain, and ongoing work on a small set of problem loans totaling approximately $5.6 million.

Positive

• Third-quarter diluted EPS +124% to $0.65
• Year-to-date diluted EPS +52% to $2.01
• Pre-tax, pre-provision earnings +37.3% to $6.8 million
• Record total loans of $1.61 billion at Sept 30, 2025

Negative

• Quarterly noninterest expense increased ~10% to $13.1 million
• Brokered deposits rose to $108.6 million, up 25.6% year-over-year
• Allowance for credit losses ratio fell to 1.43% of loans at Sept 30, 2025

Insights

Bank Financial Analyst

Strong quarter: rising margins, loan and deposit growth, and higher book value drove materially better profitability year‑to‑date.

Net interest income expanded to $17.6 million for the quarter and $51.1 million year‑to‑date, with net interest margin widening to 3.79%, supporting third‑quarter diluted EPS of $0.65 and nine‑month EPS of $2.01. Assets and loans reached records at $1.98 billion and $1.61 billion, respectively, while book value rose to $27.71 per share and tangible book value to $22.62 per share.

Key dependencies and risks include concentration within the CRE portfolio (total CRE $700,853 thousand, ~43.5% of loans) and modestly higher brokered deposits at $108.6 million. Asset quality metrics improved year‑over‑year with net recoveries and stable nonperforming loans (~$29.9 million), but a few commercial credits (~$5.6 million) drove recent uptick in nonperforming assets.

Watch near term: the Westerville branch relocation on track to open in fourth quarter of 2025, the trend in loan growth composition (C&I up 26.4% year‑over‑year), and credit remediation outcomes for the identified commercial loans over the next one to two quarters.

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

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

	●	Third quarter diluted earnings increased to $0.65 per share, driving year-to-date earnings of $2.01 per share
	●	Pre-tax, pre-provision earnings(1) increased 37.3% to $6.8 million
	●	Net interest margin expanded 33 basis points to 3.79%
	●	Total loans increased $102.5 million, or 6.8% to a record $1.61 billion
	●	Total assets increased $121.3 million, or 6.5% to a record $1.98 billion
	●	Book value increased 6.1% to $27.71 from $26.11 per share, while tangible book value(1) increased 8.4% to $22.62 from $20.87 per share

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

“Our third quarter performance was exceptionally strong, supported by core earnings growth that reflects margin expansion and disciplined operating expense control,” stated Ronald L. Zimmerly, Jr., President and Chief Executive Officer. “These results, combined with steady asset growth and strong asset quality, demonstrate the strength of our community banking model and our commitment to serving customers across our markets. Solid third quarter financial results have driven year-to-date earnings per diluted share to $2.01, increased book value by 6.1% to $27.71 per share, and produced a return on average assets of 1.14%, compared to 0.77% a year ago.”

“Continued investments in our operations and talent have strengthened our foundation and positioned Middlefield for sustained performance and shareholder value creation. The relocation of our Westerville office remains on track to open in the fourth quarter of 2025, advancing our multi-year strategy to expand our presence in the Central Ohio region. As we look to the remainder of the year, we are confident 2025 will be another year of profitable growth and progress,” concluded Mr. Zimmerly. 

Income Statement
Net interest income for the 2025 third quarter increased 16.5% to $17.6 million, compared to $15.1 million for the 2024 third quarter. The net interest margin for the 2025 third quarter was 3.79%, compared to 3.46% for the same period of 2024. Net interest income for the nine months ended September 30, 2025, increased 13.2% to $51.1 million, compared to $45.1 million for the same period last year. The increase was primarily due to strong loan growth, a decrease in FHLB advances, a decline in the rates for FHLB advances, and an overall decline in rates for deposits despite an increase in total deposit balances. Net interest margin for the nine months ended September 30, 2025, was 3.79%, compared to 3.51% for the same period last year. 

Noninterest income for the 2025 third quarter was $2.3 million, compared to $1.7 million for the same period the previous year. For the nine months ended September 30, 2025, noninterest income increased $2.0 million to $7.3 million, compared to $5.3 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 during the second quarter of 2025.

For the 2025 third quarter, noninterest expense was $13.1 million, compared to $11.9 million for the 2024 third quarter. Noninterest expense for the nine months ended September 30, 2025, was $38.9 million, compared to $35.7 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 third quarter was $5.3 million, or $0.65 per diluted share, compared to $2.3 million, or $0.29 per diluted share, for the same period last year. Net income for the nine months ended September 30, 2025, was $16.3 million, or $2.01 per diluted share, compared to $10.7 million, or $1.32 per diluted share, for the same period last year. 

For the 2025 third quarter, pre-tax, pre-provision net income was $6.8 million, compared to $4.9 million for the same period of 2024. For the nine months ended September 30, 2025, pre-tax, pre-provision net income was $19.5 million, compared to $14.7 million for the same period last year. (See non-GAAP reconciliation under the section “GAAP to Non-GAAP Reconciliations”.)

Balance Sheet
Total assets at September 30, 2025, increased 6.5% to a record $1.98 billion, compared to $1.86 billion at September 30, 2024. Total loans at September 30, 2025, were a record $1.61 billion, compared to $1.50 billion at September 30, 2024. The 6.8% year-over-year increase in total loans was primarily due to higher commercial and industrial loans, owner occupied, home equity lines of credit, and residential real estate loans, partially offset by a reduction in non-owner occupied, construction and other, and multifamily loans.

The investment securities available-for-sale portfolio was $155.9 million at September 30, 2025, compared with $169.9 million at September 30, 2024.

Total liabilities at September 30, 2025, increased 6.5% to $1.75 billion, compared to $1.65 billion at September 30, 2024. Total deposits at September 30, 2025, were $1.62 billion, compared to $1.51 billion at September 30, 2024. The 7.2% year-over-year increase in deposits was primarily due to growth in money market deposits, partially offset by a decline in time deposit accounts. Noninterest-bearing demand deposits were 25.3% of total deposits at September 30, 2025, compared to 25.8% at September 30, 2024. At September 30, 2025, the Company had brokered deposits of $108.6 million, compared to $86.5 million at September 30, 2024.

Michael C. Ranttila, Chief Financial Officer, stated, “Throughout the year we have been focused on growing core deposits by improving the mix of commercial and industrial loans and growing treasury management relationships. As a result of these strategies, commercial and industrial loans have been the largest contributor to loan growth since September 2024. At September 30, 2025, commercial and industrial loans have increased $56.3 million, or 26.4% year-over-year. Increasing commercial and industrial relationships have helped support core deposit growth, which at September 30, 2025, has increased 6.1% compared to the same period a year ago."

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

						Percent of				Percent of				Weighted Average
(Dollar amounts in thousands)		Balance				CRE Portfolio				Loan Portfolio				Loan-to-Value
Multi-Family		$	88,899				12.7	%			5.5	%			64.6	%
Owner Occupied
Real Estate and Rental and Leasing			73,969				10.6	%			4.6	%			59.1	%
Other Services (except Public Administration)			41,291				5.9	%			2.6	%			58.2	%
Manufacturing			22,991				3.3	%			1.4	%			50.4	%
Educational Services			11,762				1.7	%			0.7	%			49.7	%
Accommodation and Food Services			11,441				1.6	%			0.7	%			47.4	%
Other			60,146				8.5	%			3.7	%			53.0	%
Total Owner Occupied		$	221,600				31.6	%			13.7	%
Non-Owner Occupied
Real Estate and Rental and Leasing			324,180				46.3	%			20.2	%			54.2	%
Accommodation and Food Services			38,132				5.4	%			2.4	%			58.0	%
Health Care and Social Assistance			19,100				2.7	%			1.2	%			56.8	%
Manufacturing			3,903				0.6	%			0.2	%			44.4	%
Other			5,039				0.7	%			0.3	%			62.9	%
Total Non-Owner Occupied		$	390,354				55.7	%			24.3	%
Total CRE		$	700,853				100.0	%			43.5	%

Stockholders' Equity and Dividends
At September 30, 2025, stockholders' equity was $224.1 million, compared to $210.7 million at September 30, 2024. The 6.4% 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 September 30, 2025, was $27.71, compared to $26.11 at September 30, 2024.

At September 30, 2025, tangible stockholders' equity⁽¹⁾ was $182.9 million, compared to $168.5 million at September 30, 2024. On a per-share basis, tangible stockholders' equity⁽¹⁾ was $22.62 at September 30, 2025, compared to $20.87 at September 30, 2024. ⁽¹⁾See non-GAAP reconciliation under the section “GAAP to Non-GAAP Reconciliations”.

For the nine months ended September 30, 2025, the Company declared cash dividends of $0.63 per share, totaling $5.1 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 nine months ended September 30, 2025, the Company did not repurchase any shares of its common stock.

At September 30, 2025, the Company's equity-to-assets ratio was 11.33%, compared to 11.34% at September 30, 2024.

Asset Quality
For the 2025 third quarter, the Company recorded a provision for credit losses of $392,000, compared to a provision for credit losses of $2.2 million for the 2024 third quarter. For the nine months ended September 30, 2025, the Company recorded a recovery of credit losses of $19,000, compared to a provision for credit losses of $2.2 million for the same period of 2024.

Net recoveries were $334,000, or (0.03%) of average loans, annualized, for the nine months ended September 30, 2025, compared to net charge-offs of $1.3 million, or 0.11% of average loans, annualized, for the same period of 2024.

Nonperforming loans at September 30, 2025, were $29.9 million, which is consistent with nonperforming loans of $30.1 million at September 30, 2024. The allowance for credit losses at September 30, 2025, stood at $23.0 million, or 1.43% of total loans, compared to $22.5 million, or 1.50% of total loans at September 30, 2024. While the allowance for credit losses has remained flat year-over-year, the percentage of the allowance for credit losses to total loans has decreased as a result of an overall increase in total loans while maintaining strong credit quality within the portfolio.

Mr. Ranttila continued, “Nonperforming assets to total assets improved to 1.51% at September 30, 2025, compared to 1.62% at September 30, 2024, reflecting improving asset quality on a year-over-year basis. The modest increase in nonperforming assets from the prior quarter was primarily attributable to two commercial real estate loans, and one commercial and industrial loan. Combined, these loans represented approximately $5.6 million of the increase. We are actively working with these borrowers and expect a favorable resolution in the coming quarters. We believe these relationships are not indicative of a trend in the markets we serve, our portfolio, or our underwriting standards. Overall, we remain encouraged by the strength of our portfolio, ongoing loan and deposit growth, and the year-over-year improvement in net interest margin. We believe these positive trends will continue through the remainder of 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 $1.98 billion at September 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)

		September 30,				June 30,				March 31,				December 31,				September 30,
Balance Sheets (period end)		2025				2025				2025				2024				2024
ASSETS
Cash and due from banks		$	81,372			$	59,145			$	56,150			$	46,037			$	61,851
Federal funds sold			22,333				13,701				10,720				9,755				12,022
Cash and cash equivalents			103,705				72,846				66,870				55,792				73,873
Investment securities available for sale, at fair value			155,855				161,116				165,014				165,802				169,895
Other investments			1,131				1,014				1,021				855				895
Loans held for sale			209				152				-				-				249
Loans:
Commercial real estate:
Owner occupied			221,600				196,645				185,412				181,447				187,313
Non-owner occupied			390,354				405,032				413,621				412,291				407,159
Multifamily			88,899				79,497				88,737				89,849				94,798
Residential real estate			366,307				357,217				351,274				353,442				345,748
Commercial and industrial			269,422				257,519				235,547				229,034				213,172
Home equity lines of credit			159,805				156,297				147,154				143,379				137,761
Construction and other			104,843				123,531				122,653				103,608				111,550
Consumer installment			5,794				6,187				5,951				6,564				7,030
Total loans			1,607,024				1,581,925				1,550,349				1,519,614				1,504,531
Less allowance for credit losses			23,029				22,335				22,401				22,447				22,526
Net loans			1,583,995				1,559,590				1,527,948				1,497,167				1,482,005
Premises and equipment, net			21,428				20,304				20,494				20,565				20,528
Premises and equipment held for sale			998				1,015				-				-				-
Goodwill			36,356				36,356				36,356				36,356				36,356
Core deposit intangibles			4,862				5,112				5,362				5,611				5,869
Bank-owned life insurance			35,335				35,102				34,866				35,259				35,049
Accrued interest receivable and other assets			35,019				31,762				30,425				35,952				32,916
TOTAL ASSETS		$	1,978,893			$	1,924,369			$	1,888,356			$	1,853,359			$	1,857,635

		September 30,				June 30,				March 31,				December 31,				September 30,
		2025				2025				2025				2024				2024
LIABILITIES
Deposits:
Noninterest-bearing demand		$	410,612			$	371,155			$	369,492			$	377,875			$	390,933
Interest-bearing demand			232,452				236,239				222,953				208,291				218,002
Money market			528,246				466,935				481,664				414,074				376,619
Savings			180,547				184,534				189,943				197,749				199,984
Time			270,445				334,755				275,673				247,704				327,231
Total deposits			1,622,302				1,593,618				1,539,725				1,445,693				1,512,769
Federal Home Loan Bank advances			106,000				89,000				110,000				172,400				106,000
Other borrowings			11,502				11,557				11,609				11,660				11,711
Accrued interest payable and other liabilities			14,969				14,142				13,229				13,044				16,450
TOTAL LIABILITIES			1,754,773				1,708,317				1,674,563				1,642,797				1,646,930
STOCKHOLDERS' EQUITY
Common stock, no par value; 25,000,000 shares authorized, 9,966,196
shares issued, 8,086,886 shares outstanding as of September 30, 2025			162,349				162,195				162,195				161,999				161,916
Additional paid-in capital			1,041				811				515				246				108
Retained earnings			120,514				116,892				112,432				109,299				106,067
Accumulated other comprehensive loss			(18,875	)			(22,937	)			(20,440	)			(20,073	)			(16,477	)
Treasury stock, at cost; 1,879,310 shares as of September 30, 2025			(40,909	)			(40,909	)			(40,909	)			(40,909	)			(40,909	)
TOTAL STOCKHOLDERS' EQUITY			224,120				216,052				213,793				210,562				210,705
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	1,978,893			$	1,924,369			$	1,888,356			$	1,853,359			$	1,857,635

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		2025				2025				2025				2024				2024				2025				2024
INTEREST AND DIVIDEND INCOME
Interest and fees on loans		$	25,485			$	25,122			$	23,387			$	23,308			$	23,441			$	73,994			$	69,258
Interest-earning deposits in other institutions			299				325				291				320				348				915				1,171
Federal funds sold			192				120				155				151				143				467				417
Investment securities:
Taxable interest			538				526				530				528				528				1,594				1,500
Tax-exempt interest			958				960				960				961				962				2,878				2,900
Dividends on stock			136				183				150				170				191				469				578
Total interest and dividend income			27,608				27,236				25,473				25,438				25,613				80,317				75,824
INTEREST EXPENSE
Deposits			8,972				8,789				7,885				8,582				8,792				25,646				24,681
Short-term borrowings			918				870				1,347				1,128				1,575				3,135				5,488
Other borrowings			153				140				143				173				173				436				530
Total interest expense			10,043				9,799				9,375				9,883				10,540				29,217				30,699
NET INTEREST INCOME			17,565				17,437				16,098				15,555				15,073				51,100				45,125
Provision for (recovery of) credit losses			392				(506	)			95				(177	)			2,234				(19	)			2,185
NET INTEREST INCOME AFTER PROVISION
FOR (RECOVERY OF) CREDIT LOSSES			17,173				17,943				16,003				15,732				12,839				51,119				42,940
NONINTEREST INCOME
Service charges on deposit accounts			1,072				1,061				989				1,068				959				3,122				2,839
Gain (Loss) on equity securities			17				(7	)			(34	)			56				14				(24	)			(65	)
Earnings on bank-owned life insurance			228				230				493				230				246				951				700
Gain on sale of loans			158				39				24				64				56				221				135
Revenue from investment services			306				310				268				237				206				884				679
Gain on exchange of real estate			-				1,229				-				-				-				1,229				-
Gross rental income			-				-				-				-				-				-				67
Other income			543				216				204				259				262				963				944
Total noninterest income			2,324				3,078				1,944				1,914				1,743				7,346				5,299
NONINTEREST EXPENSE
Salaries and employee benefits			6,883				6,731				6,551				5,996				6,201				20,165				18,645
Occupancy expense			604				667				687				596				627				1,958				1,780
Equipment expense			249				248				225				221				203				722				704
Data processing costs			1,240				1,273				1,271				1,174				1,214				3,784				3,665
Ohio state franchise tax			399				399				399				390				399				1,197				1,193
Federal deposit insurance expense			267				267				267				293				255				801				762
Professional fees			700				521				598				611				539				1,819				1,654
Advertising expense			386				451				364				371				283				1,201				1,210
Software amortization expense			94				95				90				83				74				279				117
Core deposit intangible amortization			250				250				249				258				257				749				773
Loss on premises and equipment held for sale			18				693				-				-				-				711				-
Gross other real estate owned expenses			-				-				-				-				-				-				99
Other expense			2,008				2,056				1,492				1,810				1,819				5,556				5,136
Total noninterest expense			13,098				13,651				12,193				11,803				11,871				38,942				35,738
Income before income taxes			6,399				7,370				5,754				5,843				2,711				19,523				12,501
Income taxes			1,079				1,213				924				995				371				3,216				1,830
NET INCOME		$	5,320			$	6,157			$	4,830			$	4,848			$	2,340			$	16,307			$	10,671
PTPP(1)		$	6,791			$	6,864			$	5,849			$	5,666			$	4,945			$	19,504			$	14,686

(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 Nine Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,				September 30,				September 30,
		2025				2025				2025				2024				2024				2025				2024
Per common share data
Net income per common share - basic		$	0.66			$	0.76			$	0.60			$	0.60			$	0.29			$	2.02			$	1.32
Net income per common share - diluted		$	0.65			$	0.76			$	0.60			$	0.60			$	0.29			$	2.01			$	1.32
Dividends declared per share		$	0.21			$	0.21			$	0.21			$	0.20			$	0.20			$	0.63			$	0.60
Book value per share (period end)		$	27.71			$	26.74			$	26.46			$	26.08			$	26.11			$	27.71			$	26.11
Tangible book value per share (period end)(1) (2)		$	22.62			$	21.60			$	21.29			$	20.88			$	20.87			$	22.62			$	20.87
Dividends declared		$	1,698			$	1,697			$	1,697			$	1,616			$	1,615			$	5,092			$	4,841
Dividend yield			2.78	%			2.80	%			3.05	%			2.84	%			2.76	%			2.81	%			2.78	%
Dividend payout ratio			31.92	%			27.56	%			35.13	%			33.33	%			69.02	%			31.23	%			45.37	%
Average shares outstanding - basic			8,084,658				8,081,193				8,078,805				8,071,905				8,071,032				8,081,573				8,076,440
Average shares outstanding - diluted			8,147,495				8,113,572				8,097,545				8,092,357				8,086,872				8,130,213				8,092,280
Period ending shares outstanding			8,086,886				8,081,193				8,081,193				8,073,708				8,071,032				8,086,886				8,071,032
Selected ratios
Return on average assets (Annualized)			1.08	%			1.29	%			1.04	%			1.04	%			0.50	%			1.14	%			0.77	%
Return on average equity (Annualized)			9.62	%			11.53	%			9.22	%			9.19	%			4.45	%			10.12	%			6.90	%
Return on average tangible common equity(1) (3)			11.86	%			14.31	%			11.48	%			11.50	%			5.58	%			12.54	%			8.68	%
Efficiency(4)			63.73	%			64.49	%			65.22	%			65.05	%			67.93	%			64.45	%			68.19	%
Equity to assets at period end			11.33	%			11.23	%			11.32	%			11.36	%			11.34	%			11.33	%			11.34	%
Noninterest expense to average assets			0.67	%			0.72	%			0.65	%			0.63	%			0.66	%			2.04	%			1.94	%

(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		2025				2025				2025				2024				2024				2025				2024
Interest-earning assets:
Loans receivable(1)			6.30	%			6.40	%			6.17	%			6.12	%			6.19	%			6.29	%			6.19	%
Investment securities(1) (2)			3.69	%			3.64	%			3.69	%			3.63	%			3.62	%			3.67	%			3.60	%
Interest-earning deposits with other banks			3.52	%			4.13	%			3.57	%			4.23	%			4.27	%			3.72	%			4.58	%
Total interest-earning assets			5.93	%			6.03	%			5.81	%			5.78	%			5.84	%			5.93	%			5.85	%
Deposits:
Interest-bearing demand deposits			2.27	%			2.27	%			2.13	%			2.07	%			2.16	%			2.29	%			1.99	%
Money market deposits			3.43	%			3.53	%			3.38	%			3.81	%			3.93	%			3.45	%			3.90	%
Savings deposits			0.95	%			0.86	%			0.82	%			0.75	%			0.71	%			0.87	%			0.64	%
Certificates of deposit			3.74	%			3.66	%			3.93	%			4.21	%			4.49	%			3.77	%			4.37	%
Total interest-bearing deposits			2.91	%			2.90	%			2.82	%			3.05	%			3.17	%			2.90	%			3.07	%
Non-Deposit Funding:
Borrowings			4.53	%			4.54	%			4.58	%			4.93	%			5.54	%			4.55	%			5.58	%
Total interest-bearing liabilities			3.03	%			3.01	%			3.01	%			3.21	%			3.41	%			3.03	%			3.37	%
Cost of deposits			2.20	%			2.21	%			2.10	%			2.24	%			2.33	%			2.17	%			2.24	%
Cost of funds			2.33	%			2.34	%			2.30	%			2.41	%			2.58	%			2.32	%			2.54	%
Net interest margin(3)			3.79	%			3.88	%			3.69	%			3.56	%			3.46	%			3.79	%			3.51	%

(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		2025				2025				2025				2024				2024
(Dollar amounts in thousands, unaudited)
Nonperforming assets(1)		$	29,928			$	25,052			$	29,550			$	29,984			$	30,078
Allowance for credit losses		$	23,029			$	22,335			$	22,401			$	22,447			$	22,526
Allowance for credit losses/total loans			1.43	%			1.41	%			1.44	%			1.48	%			1.50	%
Net charge-offs (recoveries):
Quarter-to-date		$	(107	)		$	(18	)		$	(209	)		$	151			$	1,382
Year-to-date			(334	)			(227	)			(209	)			1,436				1,285
Net charge-offs (recoveries) to average loans, annualized:
Quarter-to-date			(0.03	%)			(0.00	%)			(0.06	%)			0.04	%			0.36	%
Year-to-date			(0.03	%)			(0.03	%)			(0.06	%)			0.10	%			0.11	%
Nonperforming loans/total loans			1.86	%			1.58	%			1.91	%			1.97	%			2.00	%
Allowance for credit losses/nonperforming loans			76.95	%			89.15	%			75.81	%			74.86	%			74.89	%
Nonperforming assets/total assets			1.51	%			1.30	%			1.56	%			1.62	%			1.62	%

(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)		September 30,				June 30,				March 31,				December 31,				September 30,
		2025				2025				2025				2024				2024
Stockholders' equity		$	224,120			$	216,052			$	213,793			$	210,562			$	210,705
Less goodwill and other intangibles			41,218				41,468				41,718				41,967				42,225
Tangible common equity		$	182,902			$	174,584			$	172,075			$	168,595			$	168,480
Shares outstanding			8,086,886				8,081,193				8,081,193				8,073,708				8,071,032
Tangible book value per share		$	22.62			$	21.60			$	21.29			$	20.88			$	20.87

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,
		2025				2025				2025				2024				2024				2025				2024
Average stockholders' equity		$	219,278			$	214,144			$	212,465			$	209,864			$	209,096			$	215,395			$	206,691
Less average goodwill and other intangibles			41,340				41,589				41,839				42,092				42,350				41,589				42,512
Average tangible common equity		$	177,938			$	172,555			$	170,626			$	167,772			$	166,746			$	173,806			$	164,179
Net income		$	5,320			$	6,157			$	4,830			$	4,848			$	2,340			$	16,307			$	10,671
Return on average tangible common equity (annualized)			11.86	%			14.31	%			11.48	%			11.50	%			5.58	%			12.54	%			8.68	%

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,
		2025				2025				2025				2024				2024				2025				2024
Net income		$	5,320			$	6,157			$	4,830			$	4,848			$	2,340			$	16,307			$	10,671
Add income taxes			1,079				1,213				924				995				371				3,216				1,830
Add provision for (recovery of) credit losses			392				(506	)			95				(177	)			2,234				(19	)			2,185
PTPP		$	6,791			$	6,864			$	5,849			$	5,666			$	4,945			$	19,504			$	14,686

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

		For the Three Months Ended
		September 30,												September 30,
		2025												2024
		Average								Average				Average								Average
		Balance				Interest				Yield/Cost				Balance				Interest				Yield/Cost
Interest-earning assets:
Loans receivable ⁽¹⁾		$	1,605,733			$	25,485				6.30	%		$	1,507,518			$	23,441				6.19	%
Investment securities(1) (2)			188,211				1,496				3.69	%			191,748				1,490				3.62	%
Interest-earning deposits with other banks(3)			70,727				627				3.52	%			63,580				682				4.27	%
Total interest-earning assets			1,864,671				27,608				5.93	%			1,762,846				25,613				5.84	%
Noninterest-earning assets			83,217												88,644
Total assets		$	1,947,888											$	1,851,490
Interest-bearing liabilities:
Interest-bearing demand deposits		$	233,106			$	1,331				2.27	%		$	217,124			$	1,181				2.16	%
Money market deposits			479,785				4,143				3.43	%			362,545				3,583				3.93	%
Savings deposits			184,146				440				0.95	%			198,775				357				0.71	%
Certificates of deposit			324,516				3,058				3.74	%			325,240				3,671				4.49	%
Short-term borrowings			82,306				918				4.43	%			113,812				1,575				5.51	%
Other borrowings			11,532				153				5.26	%			11,739				173				5.86	%
Total interest-bearing liabilities			1,315,391				10,043				3.03	%			1,229,235				10,540				3.41	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits			398,307												396,456
Other liabilities			14,912												16,703
Stockholders' equity			219,278												209,096
Total liabilities and stockholders' equity		$	1,947,888											$	1,851,490
Net interest income						$	17,565											$	15,073
Interest rate spread(4)											2.90	%											2.43	%
Net interest margin(5)											3.79	%											3.46	%
Ratio of average interest-earning assets to average interest-bearing liabilities											141.76	%											143.41	%

(1)  Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $271 and  $281 for the three months ended September 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
		September 30,												June 30,
		2025												2025
		Average								Average				Average								Average
		Balance				Interest				Yield/Cost				Balance				Interest				Yield/Cost
Interest-earning assets:
Loans receivable(1)		$	1,605,733			$	25,485				6.30	%		$	1,576,050			$	25,122				6.40	%
Investment securities(1) (2)			188,211				1,496				3.69	%			191,619				1,486				3.64	%
Interest-earning deposits with other banks(3)			70,727				627				3.52	%			61,012				628				4.13	%
Total interest-earning assets			1,864,671				27,608				5.93	%			1,828,681				27,236				6.03	%
Noninterest-earning assets			83,217												79,414
Total assets		$	1,947,888											$	1,908,095
Interest-bearing liabilities:
Interest-bearing demand deposits		$	233,106			$	1,331				2.27	%		$	238,884			$	1,353				2.27	%
Money market deposits			479,785				4,143				3.43	%			489,525				4,313				3.53	%
Savings deposits			184,146				440				0.95	%			188,999				404				0.86	%
Certificates of deposit			324,516				3,058				3.74	%			297,727				2,719				3.66	%
Short-term borrowings			82,306				918				4.43	%			77,666				870				4.49	%
Other borrowings			11,532				153				5.26	%			11,588				140				4.85	%
Total interest-bearing liabilities			1,315,391				10,043				3.03	%			1,304,389				9,799				3.01	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits			398,307												376,468
Other liabilities			14,912												13,094
Stockholders' equity			219,278												214,144
Total liabilities and stockholders' equity		$	1,947,888											$	1,908,095
Net interest income						$	17,565											$	17,437
Interest rate spread(4)											2.90	%											3.02	%
Net interest margin(5)											3.79	%											3.88	%
Ratio of average interest-earning assets to average interest-bearing liabilities											141.76	%											140.19	%

(1)  Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $271 and $266 for the three months ended September 30, 2025 and June 30, 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 Nine Months Ended
		September 30,												September 30,
		2025												2024
		Average								Average				Average								Average
		Balance				Interest				Yield/Cost				Balance				Interest				Yield/Cost
Interest-earning assets:
Loans receivable(1)		$	1,573,040			$	73,994				6.29	%		$	1,495,834			$	69,258				6.19	%
Investment securities(1) (2)			190,609				4,472				3.67	%			191,784				4,400				3.60	%
Interest-earning deposits with other banks(3)			66,466				1,851				3.72	%			63,203				2,166				4.58	%
Total interest-earning assets			1,830,115				80,317				5.93	%			1,750,821				75,824				5.85	%
Noninterest-earning assets			82,392												88,408
Total assets		$	1,912,507											$	1,839,229
Interest-bearing liabilities:
Interest-bearing demand deposits		$	223,719			$	3,839				2.29	%		$	212,699			$	3,167				1.99	%
Money market deposits			475,919				12,272				3.45	%			332,987				9,730				3.90	%
Savings deposits			188,692				1,232				0.87	%			197,477				951				0.64	%
Certificates of deposit			294,416				8,303				3.77	%			330,884				10,833				4.37	%
Short-term borrowings			93,403				3,135				4.49	%			132,275				5,488				5.54	%
Other borrowings			11,586				436				5.03	%			11,790				530				6.00	%
Total interest-bearing liabilities			1,287,735				29,217				3.03	%			1,218,112				30,699				3.37	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits			395,385												397,764
Other liabilities			13,992												16,662
Stockholders' equity			215,395												206,691
Total liabilities and stockholders' equity		$	1,912,507											$	1,839,229
Net interest income						$	51,100											$	45,125
Interest rate spread(4)											2.90	%											2.48	%
Net interest margin(5)											3.79	%											3.51	%
Ratio of average interest-earning assets to average interest-bearing liabilities											142.12	%											143.73	%

(1)  Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $809 and $851 for the nine months ended September 30, 2025 and September 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

FAQ

What were Middlefield Banc Corp (MBCN) third-quarter 2025 earnings per share?

Middlefield reported third-quarter diluted EPS of $0.65 for 2025.

How much did Middlefield's total loans grow by September 30, 2025?

Total loans increased $102.5 million (6.8%) to $1.61 billion year-over-year.

What was Middlefield's net interest margin for Q3 2025 and year-to-date?

The net interest margin was 3.79% for the third quarter and year-to-date.

Did Middlefield pay dividends in 2025 and how much for the nine months?

Yes; the company declared and paid $0.63 per share in cash dividends for the nine months ended Sept 30, 2025.

What drove Middlefield's noninterest income increase in 2025?

A one-time, non-cash real estate exchange produced a $1.2 million gain contributing to higher noninterest income.

Are there asset-quality concerns in Middlefield's 2025 results?

Nonperforming loans were about $29.9 million at Sept 30, 2025; management cited ~$5.6 million tied to three loans being worked toward resolution.