Middlefield Banc Corp. Reports 2021 First Quarter Financial Results

MIDDLEFIELD, Ohio, April 20, 2021 (GLOBE NEWSWIRE) -- Middlefield Banc Corp. (NASDAQ: MBCN) today reported financial results for the 2021 first quarter ended March 31, 2021.

2021 First Quarter Financial Highlights Include (on a year-over-year basis unless noted):

• Net income increased to a quarterly record of $4.2 million, or a record $0.65 per diluted share
• Net interest margin improved by 10 basis points to 3.73%, compared to 3.63%
• Total noninterest income was up 106.5% to $2.2 million
• Pre-tax, pre-provision for loan losses⁽¹⁾ income increased 49.5% to $5.8 million
• Return on average assets increased to 1.22% from 0.35%
• Return on average equity increased to 11.64% from 3.01%
• Return on average tangible common equity⁽¹⁾ increased to 13.16% from 3.43%
• Efficiency ratio improved to 57.91%, compared to 63.47%
• Net charge-offs declined 86.0% to $37,000
• First quarter cash dividend increased 6.7% to $0.16 per share

“Our record first quarter financial results are encouraging and reflects the successful actions we took last year to navigate the impacts of the COVID-19 pandemic, our commitment to our communities, and the dedication of our team,” stated Thomas G. Caldwell, President and Chief Executive Officer. “While the COVID-19 pandemic continues, we are seeing improving trends across many aspects of our business and across many of our markets. We believe 2021 will be a strong year for Middlefield.”

“Last year we quickly implemented our Paycheck Protection Program (“PPP”) process and helped provide more than 1,410 small businesses over $145 million of support, while protecting over 12,000 jobs. We continue to help small business customers throughout our communities and during the first quarter, we processed an additional $60 million of PPP loans. During the first quarter, we also helped customers secure $49.7 million of PPP forgiveness, which provided a $750,000 benefit to our yield on earnings assets.   Over 45% of PPP applicants booked were to small businesses without a prior banking relationship, which is a testament to the agility of our organization, our local presence, and our community-oriented values.”

“We remain focused on managing all aspects of the business that are under our control and I am proud of the success we have achieved managing asset quality, expenses, and noninterest income. As a result we experienced robust improvements in net interest margin, return on equity, and return on tangible common equity, which have all increased above pre-pandemic levels. In addition, during the first quarter, noninterest income doubled to a quarterly record of $2.2 million as a result of our long-term strategic focus to diversify revenues and strong residential mortgage demand. We continue to find new ways to support our small business customers, and we have established unique, safe, and secure offerings for the rapidly growing Ohio cannabis industry. We believe there are significant opportunities to expand our leading marijuana related business (“MRB”) banking portfolio and we will continue to seek additional growth opportunities as the economy re-opens.”

“I continue to be very thankful for the proven leadership team we have assembled and our loyal customers, employees, and shareholders. Thank you for your continued support,” concluded Mr. Caldwell.

Income Statement
Net interest income for the 2021 first quarter was $11.9 million, compared to $10.0 million for the 2020 first quarter. The net interest margin for the 2021 first quarter was 3.73%, compared to 3.63% for the same period of 2020. For the 2021 first quarter, noninterest income increased 106.5% to $2.2 million from $1.1 million for the same period of 2020. Noninterest expense for the 2021 first quarter increased 15.2% to $8.4 million, from the 2020 first quarter.

Balance Sheet
Total assets at March 31, 2021, increased 14.3% to $1.39 billion, compared to $1.21 billion at March 31, 2020. Net loans at March 31, 2021 increased 10.2% to $1.09 billion, compared to $988.8 million at March 31, 2020. Over the last 12 months, Middlefield has originated $205.4 million of loans under the PPP and helped customers receive $78.5 million of forgiveness payments under the terms of the program. The balance of PPP loans outstanding at March 31, 2021, was $126.9 million.

Total deposits at March 31, 2021, was $1.22 billion, compared to $1.00 billion at March 31, 2020. The 22.1% increase in deposits was primarily a result of increases in interest-bearing, money market and non-interest-bearing accounts, partially offset by decreases time-based accounts. The investment portfolio, classified as available for sale, was $123.2 million at March 31, 2021, compared with $103.0 million at March 31, 2020.

Donald L. Stacy, Chief Financial Officer stated, “We entered 2021 with a strengthened balance sheet as a result of last year’s strategies to increase our allowance for loan losses, as well as favorable asset performance and robust liquidity and capital levels. Our allowance for loan losses to total loans now stands at 1.28%, compared to 1.22% at December 31, 2020 and 0.93% at March 31, 2020. The increase in nonperforming loans is primarily due to payment deferrals we extended to certain business customers to help them navigate the continued challenges of the COVID-19 crisis. At March 31, 2021 we had $25.3 million in deferrals, compared to $214.8 million at June 30, 2020, a decline of over 88%.”  

“We remain focused on managing risk and pricing on loans, while proactively controlling our cost of funds and operating expenses. In addition, we continue to focus on creating value for our shareholders. During the quarter we increased our quarterly dividend payment by 6.7% and repurchased 49,468 shares of our common stock. With an equity to assets ratio of 10.4%, $100.5 million of cash and cash equivalents, and $123.2 million of investment securities available for sale we have a strong liquidity position to support our customers and our growth initiatives,” concluded Mr. Stacy.

Stockholders’ Equity and Dividends
At March 31, 2021, stockholders’ equity increased 8.7% to $144.3 million compared to $132.7 million at March 31, 2020. On a per share basis, shareholders’ equity at March 31, 2021, was $22.74 compared to $20.83, an increase of 9.2%, over the same period last year.

At March 31, 2021, tangible stockholders’ equity⁽¹⁾ increased 10.3% to $127.6 million for the 2021 first quarter, compared to $115.6 million at March 31, 2020. On a per-share basis, tangible stockholders’ equity⁽¹⁾ was $20.11 at March 31, 2021, compared to $18.16 at March 31, 2020, an increase of 10.7%.

During the 2021 first quarter, the Company paid cash dividends of $0.16 per share, compared to $0.15 per share for the first quarter last year.

At March 31, 2021, the Company had an equity to assets leverage ratio of 10.4%, compared to 10.9% at March 31, 2020.

Asset Quality
The provision for loan losses for the 2021 first quarter was $700,000, compared to $2.7 million for the same period a year ago. The year-over-year decline in the provision for loan losses was partially due to strong asset quality and last year’s prudent build in the Company’s allowance for loan losses associated with the potential economic impacts caused by the COVID-19 pandemic.

Net charge-offs were $37,000, or 0.01% of average loans, annualized, during the 2021 first quarter, compared to net charge-offs of $264,000, or 0.11% of average loans, annualized, at March 31, 2020.

Nonperforming assets at March 31, 2021, were $16.3 million, compared to $8.9 million at March 31, 2020. The allowance for loan losses at March 31, 2021, stood at $14.1 million, or 1.28% of total loans, compared to $9.2 million, or 0.93% of total loans at March 31, 2020.

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 $1.39 billion at March 31, 2021. The bank operates 16 full-service banking centers and an LPL Financial® brokerage office serving Beachwood, Chardon, Cortland, Dublin, Garrettsville, Mantua, 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

⁽¹⁾ 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 that are 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 tables following Consolidated Financial Highlights below.

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 a number of 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) the effect of the COVID-19 pandemic, including on our credit quality and business operations, as well as its impact on general economic and financial market conditions; (8) changes in the securities markets; or (9) 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.   

 

Company Contact:	Investor and Media Contact:
Thomas G. Caldwell President/Chief Executive Officer Middlefield Banc Corp. (440) 632-1666 Ext. 3200 tcaldwell@middlefieldbank.com	Andrew M. Berger Managing Director SM Berger & Company, Inc. (216) 464-6400 andrew@smberger.com

 

MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(Dollar amounts in thousands, unaudited)

		March 31,			December 31,			September 30,			June 30,			March 31,
Balance Sheets (period end)		2021			2020			2020			2020			2020
ASSETS
Cash and due from banks	$	93,037		$	92,874		$	46,097		$	55,766		$	53,533
Federal funds sold		7,436			19,543			6,884			2,520			1,800
Cash and cash equivalents		100,473			112,417			52,981			58,286			55,333
Equity securities, at fair value		690			609			553			581			550
Investment securities available for sale, at fair value		123,218			114,360			112,968			112,529			102,959
Loans held for sale		1,260			878			10,457			4,151			513
Loans:
Commercial real estate:
Owner occupied		104,379			103,121			107,342			110,134			113,272
Non-owner occupied		304,623			309,424			310,512			300,577			292,775
Multifamily		39,015			39,562			39,622			37,604			52,276
Residential real estate		228,052			233,995			222,237			227,427			233,900
Commercial and industrial		242,651			232,044			258,313			240,096			106,797
Home equity lines of credit		111,474			112,543			115,223			117,196			114,933
Construction and other		64,960			63,573			60,613			66,015			71,186
Consumer installment		9,046			9,823			10,534			11,210			12,861
Total loans		1,104,200			1,104,085			1,124,396			1,110,259			998,000
Less allowance for loan and lease losses		14,122			13,459			11,359			10,210			9,244
Net loans		1,090,078			1,090,626			1,113,037			1,100,049			988,756
Premises and equipment, net		18,002			18,333			18,633			18,962			17,653
Goodwill		15,071			15,071			15,071			15,071			15,071
Core deposit intangibles		1,644			1,724			1,807			1,890			1,973
Bank-owned life insurance		16,740			16,938			16,832			16,723			16,618
Other real estate owned		7,372			7,387			7,391			687			456
Accrued interest receivable and other assets		13,156			13,636			15,079			14,391			14,057
TOTAL ASSETS	$	1,387,704		$	1,391,979		$	1,364,809		$	1,343,320		$	1,213,939

		March 31,				December 31,				September 30,				June 30,				March 31,
		2021				2020				2020				2020				2020
LIABILITIES
Deposits:
Noninterest-bearing demand	$	317,224			$	291,347			$	268,838			$	270,738			$	206,372
Interest-bearing demand		215,684				195,722				179,080				136,722				125,184
Money market		187,204				198,493				184,936				168,842				156,556
Savings		259,973				243,888				231,696				218,545				175,468
Time		245,342				295,750				329,413				363,420				340,130
Total deposits		1,225,427				1,225,200				1,193,963				1,158,267				1,003,710
Short-term borrowings		-				-				-				20,417				60,000
Other borrowings		13,095				17,038				17,100				17,162				12,662
Accrued interest payable and other liabilities		4,901				5,931				11,690				6,779				4,880
TOTAL LIABILITIES		1,243,423				1,248,169				1,222,753				1,202,625				1,081,252
STOCKHOLDERS' EQUITY
Common stock, no par value; 10,000,000 shares authorized, 7,323,487
shares issued, 6,344,657 shares outstanding as of March 31, 2021		87,073				86,886				86,871				86,722				86,722
Retained earnings		72,729				69,578				68,046				67,150				65,140
Accumulated other comprehensive income (loss)		2,917				4,284				4,077				3,761				(2,237	)
Treasury stock, at cost; 978,830 shares as of March 31, 2021		(18,438	)			(16,938	)			(16,938	)			(16,938	)			(16,938	)
TOTAL STOCKHOLDERS' EQUITY		144,281				143,810				142,056				140,695				132,687
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,387,704			$	1,391,979			$	1,364,809			$	1,343,320			$	1,213,939

MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(Dollar amounts in thousands, unaudited)

		For the Three Months Ended
		March 31,			December 31,				September 30,				June 30,				March 31,
Statements of Income		2021			2020				2020				2020				2020
INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$	12,167		$	12,041			$	12,603			$	12,281			$	12,078
Interest-earning deposits in other institutions		18			9				8				7				94
Federal funds sold		-			1				-				-				21
Investment securities:
Taxable interest		370			297				249				206				157
Tax-exempt interest		558			591				618				634				629
Dividends on stock		29			28				29				27				30
Total interest and dividend income		13,142			12,967				13,507				13,155				13,009
INTEREST EXPENSE
Deposits		1,205			1,655				2,106				2,336				2,865
Short-term borrowings		-			(2	)			14				32				35
Other borrowings		39			43				28				62				76
Total interest expense		1,244			1,696				2,148				2,430				2,976
NET INTEREST INCOME		11,898			11,271				11,359				10,725				10,033
Provision for loan losses		700			2,100				4,000				1,000				2,740
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES		11,198			9,171				7,359				9,725				7,293
NONINTEREST INCOME
Service charges on deposit accounts		787			729				691				566				553
Gain (loss) on equity securities		81			56				(28	)			31				(160	)
Earnings on bank-owned life insurance		226			106				109				105				107
Gains on sale of loans		592			332				660				381				114
Other income		532			387				379				412				460
Total noninterest income		2,218			1,610				1,811				1,495				1,074
NONINTEREST EXPENSE
Salaries and employee benefits		4,254			4,458				3,657				4,136				3,584
Occupancy expense		600			628				497				483				550
Equipment expense		357			365				363				307				273
Data processing costs		786			617				683				684				666
Ohio state franchise tax		286			251				282				281				268
Federal deposit insurance expense		144			103				123				74				123
Professional fees		419			352				289				369				349
Net loss (gain) on other real estate owned		46			(172	)			(184	)			(33	)			1
Advertising expense		221			55				217				217				209
Software amortization expense		80			66				70				74				141
Core deposit intangible amortization		80			83				83				83				83
Other expense		1,080			1,019				942				1,014				1,005
Total noninterest expense		8,353			7,825				7,022				7,689				7,252
Income before income taxes		5,063			2,956				2,148				3,531				1,115
Income taxes		896			467				295				565				74
NET INCOME	$	4,167		$	2,489			$	1,853			$	2,966			$	1,041
PTPP (1)	$	5,763		$	5,056			$	6,148			$	4,531			$	3,855

(1)  The pre-tax pre-provision (PTPP) is the income before income taxes before provision for loan losses considerations, for reconciliation of non-GAAP measures.

MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(Dollar amounts in thousands, except per share and share amounts, unaudited)

		For the Three Months Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
		2021				2020				2020				2020				2020
Per common share data
Net income per common share - basic	$	0.65			$	0.39			$	0.29			$	0.47			$	0.16
Net income per common share - diluted	$	0.65			$	0.39			$	0.29			$	0.46			$	0.16
Dividends declared per share	$	0.16			$	0.15			$	0.15			$	0.15			$	0.15
Book value per share (period end)	$	22.74			$	22.54			$	22.27			$	22.09			$	20.83
Tangible book value per share (period end) (2) (3)	$	20.11			$	19.91			$	19.63			$	19.43			$	18.16
Dividends declared	$	1,016			$	957			$	957			$	956			$	964
Dividend yield		3.10	%			2.65	%			3.09	%			2.91	%			3.82	%
Dividend payout ratio		24.38	%			38.45	%			51.65	%			32.23	%			92.60	%
Average shares outstanding - basic		6,364,132				6,378,706				6,376,291				6,369,467				6,417,109
Average shares outstanding - diluted		6,378,493				6,397,681				6,385,765				6,388,118				6,429,443
Period ending shares outstanding		6,344,657				6,379,323				6,378,110				6,369,467				6,369,467
Selected ratios
Return on average assets		1.22	%			0.72	%			0.54	%			0.90	%			0.35	%
Return on average equity		11.64	%			6.76	%			5.11	%			8.57	%			3.01	%
Return on average tangible common equity (2) (4)		13.16	%			7.64	%			5.79	%			9.76	%			3.43	%
Efficiency (1)		57.91	%			59.29	%			51.96	%			61.29	%			63.47	%
Equity to assets at period end		10.40	%			10.33	%			10.41	%			10.47	%			10.93	%
Noninterest expense to average assets		0.60	%			0.57	%			0.52	%			0.58	%			0.61	%
(1)  The efficiency ratio is calculated by dividing noninterest expense less amortization of intangibles by the sum of net interest income on a fully taxable equivalent basis plus noninterest income
(2)  See reconciliation of non-GAAP measures below
(3)  Calculated by dividing tangible common equity by shares outstanding
(4)  Calculated by dividing annualized net income for each period by average tangible common equity

MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(Unaudited)

		For the Three Months Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
Yields		2021				2020				2020				2020				2020
Interest-earning assets:
Loans receivable (2)		4.48	%			4.28	%			4.48	%			4.53	%			4.95	%
Investment securities (2)		3.75	%			3.65	%			3.66	%			3.76	%			3.62	%
Interest-earning deposits with other banks		0.20	%			0.21	%			0.27	%			0.23	%			1.40	%
Total interest-earning assets		4.11	%			4.00	%			4.23	%			4.27	%			4.69	%
Deposits:
Interest-bearing demand deposits		0.16	%			0.21	%			0.32	%			0.35	%			0.42	%
Money market deposits		0.47	%			0.53	%			0.70	%			0.93	%			1.41	%
Savings deposits		0.07	%			0.11	%			0.20	%			0.21	%			0.50	%
Certificates of deposit		1.28	%			1.56	%			1.77	%			2.00	%			2.12	%
Total interest-bearing deposits		0.53	%			0.70	%			0.93	%			1.11	%			1.39	%
Non-Deposit Funding:
Borrowings		1.10	%			0.95	%			0.45	%			0.53	%			1.62	%
Total interest-bearing liabilities		0.54	%			0.71	%			0.91	%			1.07	%			1.40	%
Cost of deposits		0.40	%			0.54	%			0.72	%			0.85	%			1.13	%
Cost of funds		0.41	%			0.55	%			0.71	%			0.83	%			1.14	%
Net interest margin (1)		3.73	%			3.49	%			3.57	%			3.49	%			3.63	%

(1) Net interest margin represents net interest income as a percentage of average interest-earning assets.       
(2) Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were determined using an effective tax rate of 21%. 

		For the Three Months Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
Asset quality data		2021				2020				2020				2020				2020
(Dollar amounts in thousands, unaudited)
Nonperforming loans (1)	$	8,958			$	7,858			$	6,690			$	9,803			$	8,405
Other real estate owned		7,372				7,387				7,391				687				456
Nonperforming assets	$	16,330			$	15,245			$	14,081			$	10,490			$	8,861
Allowance for loan losses	$	14,122			$	13,459			$	11,359			$	10,210			$	9,244
Allowance for loan losses/total loans		1.28	%			1.22	%			1.01	%			0.92	%			0.93	%
Net charge-offs:
Quarter-to-date	$	37			$	-			$	2,851			$	34			$	264
Net charge-offs to average loans, annualized:
Quarter-to-date		0.01	%			0.00	%			1.01	%			0.01	%			0.11	%
Nonperforming loans/total loans		0.81	%			0.71	%			0.59	%			0.88	%			0.84	%
Allowance for loan losses/nonperforming loans		157.65	%			171.28	%			169.79	%			104.15	%			109.98	%
Nonperforming assets/total assets		1.18	%			1.10	%			1.03	%			0.78	%			0.73	%

(1) Nonperforming loans exclude troubled debt restructurings that are performing in accordance with their terms over a prescribed period of time.  

Reconciliation of Common Stockholders' Equity to Tangible Common Equity
	For the Three Months Ended
(Dollar amounts in thousands, unaudited)		March 31,			December 31,			September 30,			June 30,			March 31,
		2021			2020			2020			2020			2020
Stockholders' Equity	$	144,281		$	143,810		$	142,056		$	140,695		$	132,687
Less Goodwill and other intangibles		16,715			16,795			16,878			16,961			17,044
Tangible Common Equity	$	127,566		$	127,015		$	125,178		$	123,734		$	115,643
Shares outstanding		6,344,657			6,379,323			6,378,110			6,369,467			6,369,467
Tangible book value per share	$	20.11		$	19.91		$	19.63		$	19.43		$	18.16

Reconciliation of Average Equity to Return on Average Tangible Common Equity
	For the Three Months Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
		2021				2020				2020				2020				2020
Average Stockholders' Equity	$	145,208			$	146,374			$	144,167			$	139,212			$	139,208
Less Average Goodwill and other intangibles		16,754				16,836				16,919				17,002				17,085
Average Tangible Common Equity	$	128,454			$	129,538			$	127,248			$	122,210			$	122,123
Net income	$	4,167			$	2,489			$	1,853			$	2,966			$	1,041
Return on average tangible common equity (annualized)		13.16	%			7.64	%			5.79	%			9.76	%			3.43	%

Reconciliation of Pre-Tax Pre-Provision Income (PTPP)
	For the Three Months Ended
		March 31,			December 31,			September 30,			June 30,			March 31,
		2021			2020			2020			2020			2020
Net income	$	4,167		$	2,489		$	1,853		$	2,966		$	1,041
Add Income Taxes		896			467			295			565			74
Add Provision for loan losses		700			2,100			4,000			1,000			2,740
PTPP	$	5,763		$	5,056		$	6,148		$	4,531		$	3,855

MIDDLEFIELD BANC CORP.
Average Balance Sheets
(Dollar amounts in thousands, unaudited)

		For the Three Months Ended
		March 31,												March 31,
		2021												2020
		Average								Average				Average								Average
		Balance				Interest				Yield/Cost				Balance				Interest				Yield/Cost
Interest-earning assets:
Loans receivable (3)		$	1,103,373			$	12,167			4.48	%			$	984,034			$	12,078			4.95	%
Investment securities (3)		116,510				928				3.75	%			105,894				786				3.62	%
Interest-earning deposits with other banks (4)		93,709				47				0.20	%			41,717				145				1.40	%
Total interest-earning assets		1,313,592				13,142				4.11	%			1,131,645				13,009				4.69	%
Noninterest-earning assets		71,007												65,003
Total assets		$	1,384,599											$	1,196,648
Interest-bearing liabilities:
Interest-bearing demand deposits		$	203,047			$	78			0.16	%			$	113,691			$	119			0.42	%
Money market deposits		195,275				228				0.47	%			158,008				552				1.41	%
Savings deposits		256,151				47				0.07	%			183,137				226				0.50	%
Certificates of deposit		269,493				852				1.28	%			373,866				1,968				2.12	%
Short-term borrowings		111				-				0.00	%			14,808				35				0.95	%
Other borrowings		14,258				39				1.11	%			12,703				76				2.41	%
Total interest-bearing liabilities		938,335				1,244				0.54	%			856,213				2,976				1.40	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		295,199												195,411
Other liabilities		5,857												5,816
Stockholders' equity		145,208												139,208
Total liabilities and stockholders' equity		$	1,384,599											$	1,196,648
Net interest income						$	11,898											$	10,033
Interest rate spread (1)										3.57	%											3.29	%
Net interest margin (2)										3.73	%											3.63	%
Ratio of average interest-earning assets to
average interest-bearing liabilities										139.99	%											132.17	%
(1) Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.
(2) Net interest margin represents net interest income as a percentage of average interest-earning assets.
(3) Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $169 and $189 for the three months ended March 31, 2021 and 2020, respectively
(4) Includes dividends received on restricted stock.

		For the Three Months Ended
		March 31,												December 31,
		2021												2020
		Average								Average				Average								Average
		Balance				Interest				Yield/Cost				Balance				Interest				Yield/Cost
Interest-earning assets:
Loans receivable (3)		$	1,103,373			$	12,167			4.48	%			$	1,121,259			$	12,041			4.28	%
Investment securities (3)		116,510				928				3.75	%			113,801				888				3.65	%
Interest-earning deposits with other banks (4)		93,709				47				0.20	%			70,803				38				0.21	%
Total interest-earning assets		1,313,592				13,142				4.11	%			1,305,863				12,967				4.00	%
Noninterest-earning assets		71,007												78,064
Total assets		$	1,384,599											$	1,383,927
Interest-bearing liabilities:
Interest-bearing demand deposits		$	203,047			$	78			0.16	%			$	186,933			$	97			0.21	%
Money market deposits		195,275				228				0.47	%			191,771				255				0.53	%
Savings deposits		256,151				47				0.07	%			238,991				66				0.11	%
Certificates of deposit		269,493				852				1.28	%			316,293				1,237				1.56	%
Short-term borrowings		111				-				0.00	%			26				-				0.00	%
Other borrowings		14,258				39				1.11	%			17,068				41				0.96	%
Total interest-bearing liabilities		938,335				1,244				0.54	%			951,082				1,696				0.71	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		295,199												281,608
Other liabilities		5,857												4,863
Stockholders' equity		145,208												146,374
Total liabilities and stockholders' equity		$	1,384,599											$	1,383,927
Net interest income						$	11,898											$	11,271
Interest rate spread (1)										3.57	%											3.29	%
Net interest margin (2)										3.73	%											3.49	%
Ratio of average interest-earning assets to
average interest-bearing liabilities										139.99	%											137.30	%
(1) Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.
(2) Net interest margin represents net interest income as a percentage of average interest-earning assets.
(3) Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $169 and $178 for the three months ended March 31, 2021, and December 31, 2020, respectively.
(4) Includes dividends received on restricted stock.