On July 18, 2024, Middlefield Banc Corp (NASDAQ: MBCN) released its 8-K filing detailing its financial results for the second quarter of 2024. Middlefield Banc Corp is a United States-based bank holding company offering a range of banking services including checking, savings, commercial loans, real estate loans, and online banking services.
Performance Overview
Middlefield Banc Corp reported net income of $8.3 million, or $1.03 per diluted share, for the six months ended June 30, 2024. This represents a decline from $10.0 million, or $1.23 per diluted share, for the same period last year. The reported earnings per share (EPS) of $1.03 fell short of the analyst estimate of $1.72 for the annual period.
Key Financial Metrics
Net interest income for the first half of 2024 decreased by $3.8 million to $30.1 million, compared to $33.9 million for the same period last year. The net interest margin also declined to 3.53% from 4.23% in the previous year. Noninterest income, however, saw a slight increase of $0.3 million to $3.6 million.
Noninterest expense remained relatively stable at $23.9 million, compared to $23.8 million for the first half of 2023. The company's pre-tax, pre-provision net income was $9.7 million, down from $13.3 million last year.
Balance Sheet Highlights
Total assets at June 30, 2024, increased by 4.4% to $1.83 billion, compared to $1.75 billion at June 30, 2023. Total loans grew by 6.3% year-over-year to a record $1.50 billion, driven by higher commercial and industrial, residential real estate, and multifamily loans. Total deposits also saw a 2.6% increase to $1.47 billion.
Asset Quality and Liquidity
Asset quality remained stable with nonperforming assets to total assets at 0.87%, up from 0.74% a year ago. The allowance for credit losses stood at $21.8 million, or 1.46% of total loans, consistent with the same period last year. The company recorded a recovery of credit losses amounting to $49,000 for the first half of 2024.
Stockholders' Equity and Dividends
Stockholders' equity increased by 4.8% to $206.8 million at June 30, 2024, compared to $197.2 million a year ago. The equity-to-assets ratio was 11.31%, slightly up from 11.26% at June 30, 2023. The company declared cash dividends of $0.40 per share, totaling $3.2 million for the first half of 2024.
Commentary
"Despite these macro trends, we remain focused on supporting our communities, managing expenses, and maintaining a strong balance sheet. I am pleased with the progress we are making as total loans at June 30, 2024, increased 6.3% year-over-year to a record $1.50 billion," stated Ronald L. Zimmerly, Jr., President and Chief Executive Officer.
Conclusion
Middlefield Banc Corp's financial results for the second quarter of 2024 reflect both achievements and challenges. While the company has shown growth in total assets, loans, and deposits, it has faced a decline in net interest income and net income. The company's focus on maintaining a strong balance sheet and supporting community-oriented financial services remains crucial as it navigates the current economic environment.
For more detailed financial information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Middlefield Banc Corp for further details.
