Middlefield Banks Reports 1Q Income of $10M, PPP Results

MIDDLEFIELD, Ohio – Middlefield Banc Corp., the holding company of The Middlefield Banking Co., reports first-quarter net income of $10 million.

The total is down slightly from the same period a year ago, when the bank reported $10.2 million in net income.

“The Middlefield Banking Company is committed to helping its customers and communities respond to the significant financial challenges caused by the COVID-19 pandemic,” said President and CEO Thomas G. Caldwell in the bank’s quarterly report. “Over the past several weeks, Middlefield has helped nearly 560 small businesses receive over $90 million of support through the Cares Act. This process has required a significant amount of time and resources from across our organization.

“We are focused on managing all aspects of the business that are under our control as we navigate the COVID-19 crisis and a lower rate environment, while supporting our customers, employees, communities, and shareholders,” he continued. “This includes pursuing near-term strategies that protect the health and safety of our employees and customers, control risk, proactively manage expenses, and support our dividend policy. As we respond to the COVID-19 crisis and the unprecedented environment it has created, I am thankful for the proven leadership team we have assembled and our loyal customers, employees, and shareholders.” 

Total assets for the bank were $1.21 billion in the first quarter, up from $1.18 billion at the end of 2019 and down from $1.28 billion in the first quarter of last year.

Total deposits were at $1.003 billion, essentially even with the previous quarter’s $1.02 billion and the year-ago quarter’s $1.04 billion.

Other year-over-year highlights include:

  • Net interest margin at 3.63%, compared to 3.69% a year ago.  
  • Nonperforming assets declined 16.4% to $8.9 million.
  • Charge-offs declined 42.9% to $0.3 million
  • Net income impacted by $2.7 million provision associated with an increase in the allowance for loan losses as a result of the COVID-19 crisis.
  • Allowance for loan losses to total loans increased to 0.93%, compared to 0.72%.
  • Hospitality and restaurant sectors were only 4.3% and 1.7%, respectively, of net loans at March 31.
  • Book value increased 3.0% to $20.83 per share.
  • Equity to assets increased 65 basis points to 10.93%.

As of April 22, Middlefield Bank approved 558 application for $90.7 million in loans through the Paycheck Protection Program. 

Also in response to the coronavirus outbreak, the bank has received requests to modify 261 loans totaling $164.5 million and has modified, mainly through deferrals and maturity date extensions, 188 loans totaling $107 million. 

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