MIDDLEFIELD BANC CORP - 10-Q Quarterly Report

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20552

FORM 10 - Q

QUARTERLY REPORT UNDER SECTION 13 OF 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2003

TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT

For the transition period from to

Commission File Number 33-23094

Middlefield Banc Corp.

(Exact name of registrant as specified in its charter)

Ohio
(State or other jurisdiction of incorporation
or organization)

34 - 1585111
(IRS Employer Identification No.)

15985 East High Street, Middlefield, Ohio 44062-9263
(Address of principal executive offices)

(440) 632-1666
(Registrant’s telephone number, including area code)

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act). Yes o No x

State the number of shares outstanding of each of the issuer’s classes of common equity as of the latest practicable date:

Class: Common Stock, without par value
Outstanding at May 8, 2003: 1,156,579

MIDDLEFIELD BANC CORP.

INDEX

			Page Number

PART I -	FINANCIAL INFORMATION

	Item 1.	Financial Statements

		Consolidated Balance Sheet (Unaudited) as of March 31, 2003 and December 31, 2002	3

		Consolidated Statement of Income (Unaudited) for the Three Months ended March 31, 2003 and 2002	4

		Consolidated Statement of Changes in Stockholders’ Equity (Unaudited) for the Three Months ended March 31, 2003	5

		Consolidated Statement of Cash Flows (Unaudited) for the Three Months ended March 31, 2003 and 2002	6

		Notes to Unaudited Consolidated Financial Statements	7

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	18

	Item 4.	Controls and Procedures	20

PART II -	OTHER INFORMATION

	Item 1.	Legal Proceedings	21

	Item 2.	Changes in Securities	21

	Item 3.	Defaults Upon Senior Securities	21

	Item 4.	Submission of Matters to a Vote of Security Holders	21

	Item 5.	Other Information	21

	Item 6.	Exhibits and Reports on Form 8 – K	21

SIGNATURES



CERTIFICATIONS

MIDDLEFIELD BANC CORP.
CONSOLIDATED BALANCE SHEET
(Unaudited)

	March 31, 2003			December 31, 2002

ASSETS
Cash and due from banks	$	5,408,657		$	1,775,324
Federal funds sold		—			350,000

Cash and cash equivalents		5,408,657			2,125,324
Interest-bearing deposits in other institutions		574,402			571,969
Investment securities available for sale		38,050,327			35,917,057
Investment securities held to maturity (estimated market value of $4,913,502 and $6,405,918)		4,788,178			6,242,095
Loans		179,433,233			174,943,131
Less allowance for loan losses		2,389,612			2,300,485

Net loans		177,043,621			172,642,646
Premises and equipment		6,720,069			6,480,730
Bank-owned life insurance		5,000,000			—
Accrued interest and other assets		2,500,970			2,265,712


TOTAL ASSETS	$	240,086,224		$	226,245,533


LIABILITIES
Deposits:
Noninterest-bearing demand	$	25,281,315		$	26,610,912
Interest-bearing demand		10,947,717			7,216,385
Money market		12,352,520			10,660,657
Savings		51,377,777			49,277,572
Time		94,743,131			93,618,968

Total deposits		194,702,460			187,384,494
Short-term borrowings		2,389,576			785,778
Other borrowings		20,182,917			15,690,053
Accrued interest and other liabilities		782,594			638,800

TOTAL LIABILITIES		218,057,547			204,499,125


STOCKHOLDERS’ EQUITY
Common stock, no par value; 5,000,000 shares authorized,1,211,163 and 1,209,123 shares issued		7,944,216			7,883,155
Retained earnings		15,472,547			15,051,110
Accumulated other comprehensive income		356,823			475,428
Treasury stock, at cost (55,309 and 52,578 shares)		(1,744,909	)		(1,663,285	)

TOTAL STOCKHOLDERS’ EQUITY		22,028,677			21,746,408


TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	240,086,224		$	226,245,533

See accompanying notes to unaudited consolidated financial statements.

MIDDLEFIELD BANC CORP.
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)

	Three Months Ended March 31,

	2003		2002

INTEREST INCOME
Interest and fees on loans	$	3,129,988	$	2,999,617
Interest-bearing deposits in other institutions		7,101		16,436
Federal funds sold		9,307		15,653
Investment securities:
Taxable interest		308,608		275,437
Tax-exempt interest		119,590		109,531
Dividends on FHLB stock		12,929		9,649

Total interest income		3,587,523		3,426,323


INTEREST EXPENSE
Deposits		1,245,359		1,388,572
Short term borrowings		2,290		1,272
Other borrowings		203,384		146,224

Total interest expense		1,451,033		1,536,068


NET INTEREST INCOME		2,136,490		1,890,255

Provision for loan losses		105,000		75,000


NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		2,031,490		1,815,255


NONINTEREST INCOME
Service charges on deposit accounts		238,651		222,910
Investment securities gains, net		542		—
Other income		37,386		38,167

Total noninterest income		276,579		261,077


NONINTEREST EXPENSE
Salaries and employee benefits		646,471		578,865
Occupancy expense		98,552		87,242
Equipment expense		80,026		83,208
Data processing costs		116,472		84,968
Ohio state franchise tax		75,050		67,550
Other expense		294,187		357,589

Total noninterest expense		1,310,758		1,259,422


Income before income taxes		997,311		816,910
Income taxes		344,565		268,000

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Table of Contents

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