Company Overview - Middlefield Banc Corp. (MBCN) is headquartered in Middlefield and operates in the finance sector, experiencing a price change of -7.66% this year [3] - The company currently pays a dividend of $0.21 per share, resulting in a dividend yield of 3.24%, which is higher than the Banks - Northeast industry's yield of 2.89% and the S&P 500's yield of 1.57% [3] Dividend Performance - MBCN's annualized dividend of $0.84 has increased by 5% from the previous year, with an average annual increase of 8.05% over the last five years [4] - The current payout ratio for Middlefield Banc is 42%, indicating that it pays out 42% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - The Zacks Consensus Estimate for MBCN's earnings in 2025 is projected at $1.96 per share, reflecting an expected increase of 2.08% from the previous year [5] Investment Considerations - MBCN is considered a compelling investment opportunity due to its attractive dividend yield and strong Zacks Rank of 1 (Strong Buy) [7] - The company is positioned well for income investors, as dividends significantly contribute to long-term returns, often exceeding one-third of total returns [2]

Merger and Market Position - The Company completed its merger with Liberty Bancshares, Inc. on December 1, 2022, issuing 2,561,513 shares of common stock for an aggregate consideration of approximately $73.3 million [25]. - MBC's deposit market share in Geauga County is approximately 20.72%, making it the second largest market share in that county [31]. - MBC's market area includes 4.07 million people, representing over one third of Ohio's population and 41.03% of the state's GDP [30]. - The Company operates in a market area that benefits from proximity to Cleveland and Columbus, both of which are significant economic centers in Ohio [35]. Economic Environment - The Columbus metro area has experienced a population increase of 12.2% over the last decade, contributing to a strong economic environment for MBC [36]. - As of 2023, Delaware County has the highest per capita personal income in Ohio at $93,124, indicating a favorable demographic for banking services [37]. - MBC's headquarters and main banking office are located in Geauga County, which has a per capita personal income of $86,579, ranking second among Ohio's counties [34]. - The unemployment rate in Ohio is projected to increase from 3.4% in December 2023 to 4.6% in December 2024, a change of 1.2% [39]. - The average unemployment rate in MBC's twelve-county market area is lower than the state average, with a 2024 projection of 4.2% [41]. Loan Products and Portfolio - The Company offers a variety of loan products, including operational and working capital loans, residential construction loans, and consumer installment loans [27]. - As of December 31, 2024, MBC's total loan portfolio amounts to approximately $1.52 billion, with residential real estate loans making up 23.3% of this total [49]. - The commercial and commercial real estate loans total $912.6 million, representing 60.1% of the total loan portfolio as of December 31, 2024 [60]. - Home equity lines of credit increased from $127.8 million (8.6% of total loans) in 2023 to $143.4 million (9.4% of total loans) in 2024 [54]. - The Bank's lending policy allows for loans of up to 80% of the value of real estate securing a loan, with terms of up to 30 years for residential real estate loans [50]. - Approximately 63.2% of the residential mortgage loan portfolio has an adjustable rate as of December 31, 2024 [51]. - As of December 31, 2024, real estate construction loans totaled $103.6 million, representing 6.8% of the Bank's total loan portfolio [64]. - The Bank's consumer installment loan portfolio was approximately $6.6 million as of December 31, 2024, accounting for 0.4% of total loans [67]. Credit and Risk Management - The Bank's credit policy requires commercial loan applications to be supported by documentation indicating sufficient cash flow for repayment [57]. - The Bank's credit policy maintains strict guidelines for consumer loan applications, ensuring risk management in lending activities [66]. - The Bank recorded gains of $199,000 on the sale of $7.1 million in loans receivable originated for sale during the year ended December 31, 2024 [71]. - The Bank's non-accruing loans in the consumer installment loan portfolio were approximately $165,000, representing 2.5% of that portfolio as of December 31, 2024 [67]. - The Bank's commercial and commercial real estate loan portfolios had non-accruing loans of approximately $493,000, representing 0.5% as of December 31, 2024 [64]. Deposits and Funding - Total deposits increased to $1.45 billion as of December 31, 2024, compared to $1.43 billion in 2023, reflecting a growth of approximately 1.4% [87]. - The total amount of uninsured time deposits was $56.6 million, with 21.35% maturing within three months and 35.29% beyond one year [93]. - FHLB borrowings increased from $163.0 million in 2023 to $172.4 million in 2024, indicating a rise in reliance on external funding sources [94]. - The Bank's reciprocal deposits amounted to $24.5 million in 2024, down from $28.6 million in 2023, reflecting a decrease in this funding source [93]. Regulatory Environment - The Company is subject to extensive regulation by the Federal Reserve and the FDIC, which could materially affect its business and prospects [104]. - The Federal Reserve and FDIC require a minimum common equity Tier 1 capital ratio of 4.5%, Tier 1 capital ratio of 6%, and total capital ratio of 8% to risk-weighted assets [122]. - As of December 31, 2024, the Bank exceeded the regulatory requirement for the capital conservation buffer, which is 2.5% of common equity Tier 1 capital to risk-weighted assets [124]. - The company must maintain a total risk-based capital of 10.0% or greater to be classified as "well-capitalized" under prompt corrective action rules [126]. - The FDIC may restrict a bank's ability to pay dividends if it believes such payments would constitute an unsafe practice [129]. Community Reinvestment Act (CRA) Compliance - MBC's CRA performance evaluation dated December 12, 2022, states that its CRA rating is "Satisfactory" [146]. - The final rule issued on October 24, 2023, aims to strengthen CRA regulations, encouraging banks to expand access to credit in low- and moderate-income communities [146]. - The majority of the provisions in the final rule will take effect on January 1, 2026, with additional data collection requirements starting January 1, 2027 [147]. - A federal district judge in Texas has enjoined federal bank regulators from enforcing the revised CRA rules due to a lawsuit by bank trade groups [148]. - The injunction may delay the January 1, 2026, effective date for the new CRA rules until the lawsuit is resolved [149]. Cybersecurity and Compliance - The Bank dedicates significant resources to cybersecurity, including intrusion prevention and employee training programs [155]. - The Bank employs a layered defensive approach to manage cybersecurity controls, including monitoring and alerting for suspicious activities [156]. - Compliance with the Bank Secrecy Act and anti-money laundering regulations is mandatory, requiring financial institutions to maintain records and report suspicious transactions [157]. Employee and Operational Management - The Bank had 246 full-time equivalent employees as of December 31, 2024, with no employees represented by a collective bargaining group [101]. - Employee retention strategies focus on competitive wages and benefits, contributing to operational efficiency and cost management [100]. - The company's income is entirely derived from dividends received from its Bank, which is also the main source of its liquidity [118].

Wall Street has remained volatile since the beginning of this year, with multiple factors denting investors’ sentiment. An unexpected surge in inflation, uncertainty over the Federal Reserve’s future rate cuts, and fears of a trade war owing to President Donald Trump’s new tariffs on steel and aluminum exports have been rattling stocks.Given this uncertainty, cautious investors looking for a steady income and ways to protect their capital may want to hold or buy dividend-paying stocks. Three such stocks are ...

Core Viewpoint - Middlefield Banc Corp. (MBCN) shows a significantly improving earnings outlook, making it a solid investment choice as analysts continue to raise earnings estimates for the company [1][2]. Estimate Revisions - The upward trend in earnings estimate revisions indicates growing analyst optimism regarding Middlefield Banc's earnings prospects, which is expected to positively impact its stock price [2]. - For the current quarter, the earnings estimate is $0.48 per share, reflecting a decrease of 5.88% from the previous year, but the Zacks Consensus Estimate has increased by 11.63% over the last 30 days with two upward revisions [4]. - For the full year, the earnings estimate stands at $1.96 per share, representing a 2.08% increase from the previous year, with a 5.11% boost in the consensus estimate over the past month [5]. Zacks Rank - Middlefield Banc currently holds a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts in raising earnings estimates, which historically correlates with significant stock outperformance [3][6]. - Stocks with Zacks Rank 1 and 2 have shown to significantly outperform the S&P 500, reinforcing the potential for Middlefield Banc's stock [6]. Stock Performance - Over the past four weeks, Middlefield Banc shares have increased by 6.3%, suggesting investor confidence in the company's earnings growth prospects [7].

MIDDLEFIELD, Ohio, Feb. 10, 2025 (GLOBE NEWSWIRE) -- Middlefield Banc Corp. (NASDAQ:MBCN) today announced that its Board of Directors declared a quarterly cash dividend of $0.21 per common share, representing a 5% increase from the 2024 fourth quarter dividend. The 2025 first-quarter dividend is payable on March 14, 2025, to shareholders of record on February 28, 2025. Ronald L. Zimmerly, Jr., President and Chief Executive Officer, stated, "The 5% increase in Middlefield's dividend payment demonstrates our ...

Core Insights - Middlefield Banc Corp. (MBCN) reported revenue of $17.47 million for the quarter ended December 2024, marking a year-over-year increase of 2.9% and exceeding the Zacks Consensus Estimate of $17.05 million by 2.46% [1] - The company achieved an EPS of $0.60, up from $0.44 a year ago, resulting in an EPS surprise of 27.66% compared to the consensus estimate of $0.47 [1] Financial Performance Metrics - Net Interest Margin was reported at 3.6%, surpassing the two-analyst average estimate of 3.4% [4] - Average Interest Earning Assets totaled $1.77 billion, slightly below the estimated $1.78 billion [4] - Net charge-offs to average loans outstanding were 0.1%, better than the average estimate of 0.2% [4] - Efficiency ratio stood at 65.1%, significantly better than the average estimate of 70% [4] - Total Noninterest Income was $1.91 million, slightly above the average estimate of $1.90 million [4] - Net Interest Income reached $15.56 million, exceeding the average estimate of $15.15 million [4] Stock Performance - Shares of Middlefield Banc have declined by 15.3% over the past month, contrasting with the Zacks S&P 500 composite's increase of 2.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Group 1 - Middlefield Banc Corp. reported quarterly earnings of $0.60 per share, exceeding the Zacks Consensus Estimate of $0.47 per share, and up from $0.44 per share a year ago, representing an earnings surprise of 27.66% [1] - The company posted revenues of $17.47 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.46%, compared to year-ago revenues of $16.98 million [2] - Over the last four quarters, Middlefield Banc has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Group 2 - The stock has underperformed, losing about 11.7% since the beginning of the year, while the S&P 500 has gained 3.5% [3] - The current consensus EPS estimate for the coming quarter is $0.43 on revenues of $17.05 million, and for the current fiscal year, it is $1.86 on revenues of $69.65 million [7] - The Zacks Industry Rank for Banks - Northeast is currently in the top 20% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

MIDDLEFIELD, Ohio, Jan. 23, 2025 (GLOBE NEWSWIRE) -- Middlefield Banc Corp. (NASDAQ:MBCN) today reported financial results for the twelve months ended December 31, 2024. 2024 Fourth Quarter Financial Highlights: Earnings increased 36.4% year-over-year to $0.60 per diluted shareReturn on average assets (annualized) increased 26 basis points year-over-year to 1.04%Asset quality remained stable compared to the 2024 third quarter with nonperforming assets to total assets of 1.62% 2024 Full Year Financial Highli ...

MIDDLEFIELD, Ohio, Jan. 23, 2025 (GLOBE NEWSWIRE) -- Middlefield Banc Corp. (NASDAQ: MBCN) today reported financial results for the twelve months ended December 31, 2024. 2024 Fourth Quarter Financial Highlights: Earnings increased 36.4% year-over-year to $0.60 per diluted shareReturn on average assets (annualized) increased 26 basis points year-over-year to 1.04%Asset quality remained stable compared to the 2024 third quarter with nonperforming assets to total assets of 1.62% 2024 Full Year Financial Highl ...

MIDDLEFIELD, Ohio, Nov. 18, 2024 (GLOBE NEWSWIRE) -- Middlefield Banc Corp. (NASDAQ: MBCN) today announced that its Board of Directors declared a quarterly cash dividend of $0.20 per common share. The fourth-quarter dividend is payable on December 13, 2024, to shareholders of record on November 29, 2024. 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 $1.86 billion at September 30, 2 ...