MBCN Middlefield Banc Corporation

Exhibit 99.1

15985 East High Street

P. O. Box 35

Middlefield, Ohio 44062

Phone: 440/632-1666 FAX: 440/632-1700

www.middlefieldbank.bank

Middlefield Banc Corp. Reports 2024 Twelve-Month Financial Results

MIDDLEFIELD, OHIO, January 23, 2025  ◆◆◆◆ Middlefield Banc Corp. (NASDAQ: MBCN) today reported financial results for the twelve months ended December 31, 2024.

2024 Fourth Quarter Financial Highlights:

2024 Full Year Financial Highlights:

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

Ronald L. Zimmerly, Jr., President and Chief Executive Officer, stated, “Our 2024 fourth quarter marks one of the most profitable quarters in Middlefield’s 124-year history, supported by the talents of our team and the strengths of our community banking platform. During the quarter, we experienced higher net interest income, grew non-interest income, achieved stable asset quality, and controlled operating expenses. These results produced record fourth quarter net income and a 26-basis point year-over-year expansion in our annualized return on average assets. I am proud of this performance, highlighting Middlefield’s resilience and ability to navigate a dynamic banking environment.” 

“While we expect competition for deposits will continue, our loan pipeline remains robust, and our continued quarter over quarter increase in loans is indicative of strong origination activity across our Ohio markets. We believe 2025 will be another good year of profitable growth for Middlefield, reflecting our longstanding commitment to our communities, disciplined underwriting standards, and continued investments in our business,” concluded Mr. Zimmerly. 

Income Statement

Net interest income for the twelve months ended December 31, 2024, decreased $4.5 million to $60.7 million, compared to $65.2 million for the same period last year. The net interest margin for the twelve months ended December 31, 2024, was 3.52%, compared to 3.97% last year. Net interest income for the 2024 fourth quarter increased $179,000 to $15.6 million, compared to $15.4 million for the 2023 fourth quarter. The net interest margin for the 2024 fourth quarter was 3.56%, compared to 3.63% for the same period of 2023.

For the twelve months ended December 31, 2024, noninterest income increased $522,000 to $7.2 million, compared to $6.7 million for the same period in 2023. Noninterest income for the 2024 fourth quarter was $1.9 million, compared to $1.6 million for the same period the previous year.

Noninterest expense for the twelve months ended December 31, 2024, was $47.5 million, compared to $48.1 million for the same period in 2023. For the 2024 fourth quarter, noninterest expense was $11.8 million, compared to $12.2 million for the 2023 fourth quarter.

Net income for the twelve months ended December 31, 2024, was $15.5 million, or $1.92 per diluted share, compared to $17.4 million, or $2.14 per diluted share, for the same period last year. Net income for the 2024 fourth quarter was $4.8 million, or $0.60 per diluted share, compared to $3.5 million, or $0.44 per diluted share, for the same period last year.

For the twelve months ended December 31, 2024, pre-tax, pre-provision net income was $20.4 million, compared to $23.8 million last year. For the 2024 fourth quarter, pre-tax, pre-provision net income was $5.7 million, compared to $4.8 million for the same period of 2023. (See non-GAAP reconciliation under the section “GAAP to Non-GAAP Reconciliations”.)

Balance Sheet

Total assets at December 31, 2024, increased 1.7% to $1.85 billion, compared to $1.82 billion at December 31, 2023. Total loans at December 31, 2024, were $1.52 billion, compared to $1.48 billion at December 31, 2023. The 2.8% year-over-year increase in total loans was primarily due to originations within the residential real estate and non-owner occupied loan segments as well as home equity lines of credit, offset by a decrease in construction and other loans due to the conversion to permanent loans. The investment securities available-for-sale portfolio was $165.8 million at December 31, 2024, compared with $170.8 million at December 31, 2023.

Total liabilities at December 31, 2024, increased 1.6% to $1.64 billion, compared to $1.62 billion at December 31, 2023. Total deposits at December 31, 2024, were $1.45 billion, compared to $1.43 billion at December 31, 2023. The 1.3% year-over-year increase in deposits was primarily due to growth in money market accounts, partially offset by declines in time deposits, noninterest-bearing demand, and savings accounts. Noninterest-bearing demand deposits were 26.1% of total deposits at December 31, 2024, compared to 28.1% at December 31, 2023. At December 31, 2024, the Company had brokered deposits of $35.1 million, compared to $90.3 million at December 31, 2023.

Michael C. Ranttila, Chief Financial Officer, stated, “The rate environment was volatile during the fourth quarter, which temporarily increased our accumulated other comprehensive loss. Against this backdrop, we also strategically let brokered deposits mature during the fourth quarter to see how the market would respond to the December 2024 Fed rate cut. Despite these impacts, our capital levels continue to expand, and at December 31, 2024, our equity to assets ratio improved year-over-year and from September 30, 2024 levels. Overall liquidity remains robust with access to the Federal Reserve Board’s discount window, cash and investments of $221.6 million, and additional borrowing capacity of $381.7 million on Federal Home Loan Bank advances at December 31, 2024.”

Middlefield's CRE portfolio included the following categories at December 31, 2024:

Stockholders' Equity and Dividends

At December 31, 2024, stockholders' equity was $210.6 million, compared to $205.7 million at December 31, 2023. The 2.4% year-over-year increase in stockholders' equity was primarily from higher retained earnings, partially offset by an increase in the unrealized loss on the available-for-sale investment portfolio and stock acquired under the Company's stock repurchase program. On a per-share basis, shareholders' equity at December 31, 2024, was $26.08, compared to $25.41 at December 31, 2023.

At December 31, 2024, tangible stockholders' equity⁽¹⁾ was $168.6 million, compared to $162.7 million at December 31, 2023. On a per-share basis, tangible stockholders' equity⁽¹⁾ was $20.88 at December 31, 2024, compared to $20.10 at December 31, 2023. ⁽¹⁾See non-GAAP reconciliation under the section “GAAP to Non-GAAP Reconciliations”.

For the twelve months ended December 31, 2024, the Company declared cash dividends of $0.80 per share, totaling $6.5 million. 

For the twelve months ended December 31, 2024, the Company repurchased 43,858 shares of its common stock, at an average price of $24.00 per share. The repurchases occurred during the first quarter of 2024.

At December 31, 2024, the Company's equity-to-assets ratio was 11.36%, compared to 11.28% at December 31, 2023.

Asset Quality

For the twelve months ended December 31, 2024, the Company recorded a provision for credit losses of $2.0 million, versus a provision for credit losses of $3.0 million for the same period last year. For the 2024 fourth quarter, the Company recorded a recovery of credit losses of $177,000, compared to a provision for credit losses of $554,000 for the same period of 2023.

Net charge-offs were $1.4 million, or 0.10% of average loans, for the twelve months ended December 31, 2024, compared to net recoveries of $31,000, or 0.00% of average loans, for the same period last year. Net charge-offs were $151,000, or 0.04% of average loans, annualized, for the 2024 fourth quarter, compared to net recoveries of $117,000, or (0.03%) of average loans, annualized, for the same period of 2023.  The higher net charge-offs were due to the partial charge-off of one loan during the 2024 third quarter.    

Nonperforming assets at December 31, 2024, which consisted of nonperforming loans, were $30.0 million, compared to $10.9 million at December 31, 2023. The increase in nonperforming assets is primarily the result of a $13.5 million loan moved to nonaccrual in the 2024 third quarter, subsequent to the partial charge-off noted in the previous paragraph. The allowance for credit losses at December 31, 2024, stood at $22.4 million, or 1.48% of total loans, compared to $21.7 million, or 1.47% of total loans at December 31, 2023. The increase in the allowance for credit losses was mainly from an overall increase in total loans as well as changes in projected loss drivers, prepayment assumptions, curtailment expectations over the reasonable and supportable forecast period, and geographic footprint of unemployment data.

Mr. Ranttila continued, “With nearly 70% of our loan portfolio subject to repricing at December 31, 2024, we are cautiously optimistic we can maintain a stable net interest margin throughout 2025.  In addition, credit quality remained firm during the fourth quarter, and we are well reserved with an allowance for credit losses to total loans of 1.48% at December 31, 2024. We expect stable economic activity across our Central, Western and Northeast Ohio markets 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 $1.85 billion at December 31, 2024. 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)

MIDDLEFIELD BANC CORP.

Consolidated Selected Financial Highlights

(Dollar amounts in thousands, unaudited)

MIDDLEFIELD BANC CORP.

Consolidated Selected Financial Highlights

(Dollar amounts in thousands, except per share and share amounts, unaudited)

MIDDLEFIELD BANC CORP.

Consolidated Selected Financial Highlights

(unaudited)

MIDDLEFIELD BANC CORP.

GAAP to Non-GAAP Reconciliations

MIDDLEFIELD BANC CORP.

Average Balance Sheets

(Dollar amounts in thousands, unaudited)