Middlefield Banc Corp. Reports 2025 Six-Month Financial Results

Rhea-AI Summary

Middlefield Banc Corp. (NASDAQ: MBCN) reported strong financial results for the six months ended June 30, 2025. Second-quarter highlights include a 46.2% increase in earnings per share to $0.76, and a 37 basis point expansion in net interest margin to 3.88%.

The bank achieved record levels with total loans increasing 5.6% to $1.58 billion and total assets growing 5.3% to $1.92 billion. Asset quality improved with nonperforming assets to total assets decreasing to 1.30%. The company completed a real estate exchange in Westerville, Ohio, resulting in a $1.2 million one-time gain.

Notable improvements include an 8.4% year-over-year increase in deposits to $1.59 billion and a 4.3% increase in book value to $26.74 per share. The company also increased its quarterly cash dividend by 5% to $0.21 per share.

Positive

• None.

Negative

• Noninterest expense increased to $13.7 million from $11.9 million year-over-year
• Noninterest-bearing deposits decreased to 24.2% of total deposits from 26.3%
• Brokered deposits nearly doubled to $165.1 million from $86.5 million
• Nonperforming loans increased to $25.1 million from $16.0 million year-over-year

Insights

Financial Analyst

Middlefield delivered impressive Q2 results with 46.2% EPS growth, margin expansion, and improved asset quality despite banking sector challenges.

Middlefield Banc Corp's Q2 2025 results showcase a remarkably strong performance across multiple metrics. The 46.2% year-over-year increase in EPS to $0.76 is particularly impressive in today's banking environment. This substantial earnings growth stems from several factors working in tandem: record loan growth (up 5.6% to $1.58 billion), net interest margin expansion (up 37 basis points to 3.88%), and improved asset quality (nonperforming assets to total assets down 32 basis points to 1.30%).

The bank's net interest income jumped 15.6% year-over-year to $17.4 million, demonstrating effective balance sheet management amid a challenging rate environment. The 37 basis point margin expansion is particularly notable as many regional banks continue struggling with margin compression. This expansion likely stems from their success in managing deposit costs while maintaining loan yields.

On the asset quality front, the improvement is significant and against the trend seen at many peers. The bank successfully reduced a problematic loan, bringing nonperforming assets down $4.9 million from December 2024. The $506,000 recovery for credit losses in Q2 further underscores the improving credit picture.

The 8.4% deposit growth is another bright spot, though the increasing reliance on brokered deposits (now $165.1 million vs. $86.5 million year-over-year) bears watching as these are typically more expensive and less stable than core deposits. However, management reported a seven-basis point reduction in funding costs since the start of the year, suggesting they're navigating this challenge effectively.

The real estate exchange in Westerville that generated a $1.2 million one-time gain demonstrates strategic market positioning, particularly in Central Ohio where the bank sees growth opportunities. While this transaction boosted quarterly results, even excluding this non-recurring item, the core operational performance remains strong.

Shareholder value continues to build with book value up 4.3% to $26.74 and tangible book value increasing 6.1% to $21.60. The 5% dividend increase implemented in Q1 2025 reflects management's confidence in sustainable profitability.

The commercial real estate (CRE) portfolio appears well-diversified across sectors, with healthy loan-to-value ratios (mostly in the 50-65% range), providing a buffer against potential market volatility. At 43.1% of the total loan portfolio, the CRE concentration is manageable and better positioned than many community banks with heavier commercial real estate exposure.

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

FAQ

What were MBCN's earnings per share for Q2 2025?

Middlefield Banc Corp. reported earnings of $0.76 per diluted share for Q2 2025, a 46.2% increase from $0.52 in Q2 2024.

How much did Middlefield's total loans grow in Q2 2025?

Total loans increased by $84.2 million or 5.6% to a record $1.58 billion compared to the previous year.

What was MBCN's net interest margin in Q2 2025?

The net interest margin was 3.88%, expanding 37 basis points from 3.51% in Q2 2024.

How did Middlefield's asset quality change in Q2 2025?

Asset quality improved with nonperforming assets to total assets decreasing by 32 basis points to 1.30% from the previous quarter.

What was the impact of the Westerville real estate exchange for MBCN?

The exchange resulted in a one-time, non-cash gain of $1.2 million in Q2 2025, with the company receiving land valued at $1.5 million.