MIDDLEFIELD, Ohio, April 27, 2020 (GLOBE NEWSWIRE) -- Middlefield Banc Corp. (NASDAQ: MBCN) today reported financial results for the 2020 first quarter ended March 31, 2020.

2020 First Quarter Financial Highlights Include (on a year-over-year basis unless noted):

• Net interest margin remained stable at 3.63%, compared to 3.69%  
• Nonperforming assets declined 16.4% to $8.9 million
• Charge-offs declined 42.9% to $0.3 million
• Net income impacted by $2.7 million provision associated with an increase in the allowance for loan losses as a result of the COVID-19 crisis
• Allowance for loan losses to total loans increased to 0.93%, compared to 0.72%
• Hospitality and restaurant sectors were only 4.3% and 1.7%, respectively, of net loans at March 31, 2020
• Book value increased 3.0% to $20.83 per share
• Equity to assets increased 65 basis points to 10.93%

“The Middlefield Banking Company is committed to helping its customers and communities respond to the significant financial challenges caused by the COVID-19 pandemic,” stated Thomas G. Caldwell, President and Chief Executive Officer. “Over the past several weeks, Middlefield has helped nearly 560 small businesses receive over $90 million of support through the March 2020 CARES Act. This process has required a significant amount of time and resources from across our organization. I am extremely proud of our associates for their response to the crisis and their dedication providing essential financial services to our communities.” 

“We ended the 2020 first quarter with a strong financial position and capital levels. Our net interest margin has remained stable over the past 12 months, despite a declining rate environment and significant competition for loans and deposits. Net income would have also been stable, but we prudently took a $2.7 million provision during the first quarter to increase our allowance for loan losses. We are confident in our conservative and disciplined approach to credit and risk management, however the economic challenges caused by the COVID-19 crisis have had an impact on credit quality and cannot be discounted.. Macroeconomic trends have yet to fully capture the impact of the COVID-19 crisis, but we believe underlying economic weaknesses in our markets existed on March 31, 2020. We expect further pressure on our net interest margin due to the recent 100 basis point reduction in the Federal Reserve target rate, and we will continue making the necessary adjustments to our allowance for loan losses as the COVID-19 crisis evolves.”   

“We are focused on managing all aspects of the business that are under our control as we navigate the COVID-19 crisis and a lower rate environment, while supporting our customers, employees, communities, and shareholders. This includes pursuing near-term strategies that protect the health and safety of our employees and customers, control risk, proactively manage expenses, and support our dividend policy. As we respond to the COVID-19 crisis and the unprecedented environment it has created, I am thankful for the proven leadership team we have assembled and our loyal customers, employees, and shareholders.” 

Income Statement
Net interest income for the 2020 first quarter was $10.0 million, compared to $10.2 million for the 2019 first quarter. The net interest margin for the 2020 first quarter was 3.63%, compared to 3.69% for the same period of 2019. For the 2020 first quarter, noninterest income was essentially unchanged from the same period last year, at $1.1 million. Noninterest expense for the 2020 first quarter decreased 3.3% to $7.3 million, from the 2019 first quarter.

Donald L. Stacy, Chief Financial Officer stated: “Throughout 2019, we remained focused on managing risk and pricing on loans, while prudently controlling our funding costs on deposits. While these strategies impacted loan growth last year, we ended the 2020 first quarter with a 16.4% year-over-year reduction in nonperforming assets, and a 42.9% year-over-year reduction in charge-offs. As a result, we entered this challenging market environment with improved asset quality trends. However, since the COVID-19 crisis began, we have experienced an increase in requests for deferrals and we are working on providing temporary relief to our customers. With an equity to assets ratio of 10.93%, we have strong liquidity and have access to additional liquidity sources if needed to navigate this challenging period.”

Balance Sheet
Total assets at March 31, 2020, decreased 5.2% to $1.21 billion, compared to $1.28 billion at March 31, 2019. Net loans at March 31, 2020, were $988.8 million, compared to $997.3 million at March 31, 2019. The 0.9% year-over-year decrease in net loans was primarily a result of a $35.5 million decrease in multifamily commercial real estate loans, and a $15.4 million decline in non-owner occupied commercial real estate loans, partially offset by a $21.0 million increase in commercial and industrial loans, and an $11.9 million increase in construction and other loans. 

Total deposits at March 31, 2020, was $1.00 billion, compared to $1.04 billion at March 31, 2019.  The 3.5% decrease in deposits was primarily a result of lower time, money market, and saving deposits, partially offset by higher noninterest-bearing and interest-bearing demand accounts. The investment portfolio, classified as available for sale, was $103.0 million at March 31, 2020, compared with $98.1 million at March 31, 2019.

Stockholders’ Equity and Dividends
At March 31, 2020, stockholders’ equity increased 0.8% to $132.7 million compared to $131.7 million at March 31, 2019. On a per share basis, shareholders’ equity at March 31, 2020, was $20.83 compared to $20.22, an increase of 3.0%, over the same period last year.

At March 31, 2020, tangible stockholders’ equity⁽¹⁾ increased 1.2% to $115.6 million for the 2020 first quarter, compared to $114.3 million at March 31, 2019. On a per-share basis, tangible stockholders’ equity⁽¹⁾ was $18.16 at March 31, 2020, compared to $17.55, an increase of 3.5%, at March 31, 2019.

During the 2020 first quarter, the Company paid cash dividends of $0.15 per share, compared to $0.14 per share for the first quarter last year.

At March 31, 2020, the Company had an equity to assets leverage ratio of 10.93%, compared to 10.28% at March 31, 2019.

Asset Quality
The provision for loan losses for the 2020 first quarter was $2.7 million, compared to $240,000 for the same period a year ago. Most of the increased provision is the result of increases to the current economic conditions qualitative factors. Nonperforming assets at March 31, 2020, were $8.9 million, compared to $10.6 million at March 31, 2019. Net charge-offs were $264,000, or 0.11% of average loans, annualized, during the 2020 first quarter, compared to net charge-offs of $462,000, or 0.19% of average loans, annualized, at March 31, 2019. The allowance for loan losses at March 31, 2020, stood at $9.2 million, or 0.93% of total loans, compared to $7.2 million, or 0.72% of total loans at March 31, 2019.

COVID-19 Update
The following table provides information with respect to our commercial loans by type at March 31, 2020.

At Risk
Type		Number of Loans		Balance (in thousands)			% of Total Loans
Residential non-owner occupied		337		$	142,725		14.30	%
Retail		220			197,073		19.75	%
Restaurant/food service/bar		48			16,868		1.69	%
Hospitality and tourism		32			45,225		4.53	%
Self-storage facility		29			25,622		2.57	%
Other		121			14,218		1.42	%
Total		787		$	441,731		44.26	%

The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, was signed into law on March 27, 2020, and provides over $2.0 trillion in emergency economic relief to individuals and businesses impacted by the COVID-19 pandemic. The CARES Act authorized the Small Business Administration (“SBA”) to temporarily guarantee loans under a new 7(a) loan program called the Paycheck Protection Program (“PPP”).

As a qualified SBA lender, we were automatically authorized to originate PPP loans.

An eligible business can apply for a PPP loan up to the greater of: (1) 2.5 times its average monthly payroll costs; or (2) $10.0 million. PPP loans will have: (a) an interest rate of 1.0%, (b) a two-year loan term to maturity; and (c) principal and interest payments deferred for six months from the date of disbursement. The SBA will guarantee 100% of the PPP loans made to eligible borrowers. The entire principal amount of the borrower’s PPP loan, including any accrued interest, is eligible to be reduced by the loan forgiveness amount under the PPP so long as employee and compensation levels of the business are maintained and 75% of the loan proceeds are used for payroll expenses, with the remaining 25% of the loan proceeds used for other qualifying expenses.

As of April 22, 2020, we approved 558 applications for up to $90.7 million of loans under the PPP.

As of April 21, 2020, we received requests to modify 261 loans aggregating $164.5 million. As of April 21, 2020, we modified 188 loans aggregating $107.0 million primarily consisting of the deferral of principal and interest payments and the extension of the maturity date. The remaining modifications are in process and are expected to be completed.

Details with respect to actual loan modifications are as follows:

Deferrals
Type		Number of Loans		Balance (in thousands)			% of Total Loans
Residential non-owner occupied		9		$	2,297		0.23	%
Office		9			1,776		0.18	%
Retail		41			52,443		5.25	%
Restaurant/food service/bar		8			3,320		0.33	%
Hospitality and tourism		8			4,638		0.46	%
Other		113			42,547		4.26	%
Total		188		$	107,021		10.71	%

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 $1.21 billion at March 31, 2020.  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 and return on average tangible equity, 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)
		March 31,					December 31,					September 30,				June 30,					March 31,
Balance Sheets (period end)			2020					2019				2019					2019					2019
ASSETS
Cash and due from banks	$		53,533			$		35,113			$	118,956			$		133,372			$		121,045
Federal funds sold			1,800					-				1,069					2,010					-
Cash and cash equivalents			55,333					35,113				120,025					135,382					121,045
Equity securities, at fair value			550					710				628					660					674
Investment securities available for sale, at fair value			102,959					105,733				105,041					98,809					98,114
Loans held for sale			513					1,220				791					431					1,230
Loans:
Commercial real estate:
Owner occupied			113,272					102,386				106,839					109,944					107,084
Non-owner occupied			292,775					302,180				312,049					307,562					308,134
Multifamily			52,276					62,028				70,633					75,252					87,768
Residential real estate			233,900					234,798				236,280					232,168					230,618
Commercial and industrial			106,797					89,527				85,861					85,520					85,756
Home equity lines of credit			114,933					112,248				111,459					113,662					109,865
Construction and other			71,186					66,680				60,957					58,161					59,322
Consumer installment			12,861					14,411				15,204					15,963					15,937
Total loans			998,000					984,258				999,282					998,232					1,004,484
Less allowance for loan and lease losses			9,244					6,768				7,001					7,304					7,206
Net loans			988,756					977,490				992,281					990,928					997,278
Premises and equipment, net			17,653					17,874				17,182					16,788					15,741
Goodwill			15,071					15,071				15,071					15,071					15,071
Core deposit intangibles			1,973					2,056				2,141					2,227					2,312
Bank-owned life insurance			16,618					16,511				16,403					16,294					16,185
Accrued interest receivable and other assets			14,513					10,697				11,015					11,832					13,285
TOTAL ASSETS	$		1,213,939			$		1,182,475			$	1,280,578			$		1,288,422			$		1,280,935
		March 31,					December 31,					September 30,				June 30,					March 31,
			2020					2019				2019					2019					2019
LIABILITIES
Deposits:
Noninterest-bearing demand	$		206,372			$		191,370			$	199,235			$		198,817			$		194,298
Interest-bearing demand			125,184					107,844				107,033					94,266					107,246
Money market			156,556					160,826				155,419					152,885					178,668
Savings			175,468					192,003				182,005					194,505					184,662
Time			340,130					368,800				390,721					411,034					375,357
Total deposits			1,003,710					1,020,843				1,034,413					1,051,507					1,040,231
Short-term borrowings			60,000					5,075				92,000					85,000					91,000
Other borrowings			12,662					12,750				12,359					12,449					11,518
Accrued interest payable and other liabilities			4,880					6,032				5,893					5,206					6,487
TOTAL LIABILITIES			1,081,252					1,044,700				1,144,665					1,154,162					1,149,236
STOCKHOLDERS' EQUITY *
Common stock, no par value; 10,000,000 shares authorized, 7,298,829
shares issued, 6,369,467 shares outstanding as of March 31, 2020			86,722					86,617				86,617					86,590					86,437
Retained earnings			65,140					65,063				62,886					60,517					58,139
Accumulated other comprehensive (loss) income			(2,237	)				1,842				2,157					1,377					641
Treasury stock, at cost; 929,362 shares as of March 31, 2020			(16,938	)				(15,747	)			(15,747	)				(14,224	)				(13,518	)
TOTAL STOCKHOLDERS' EQUITY			132,687					137,775				135,913					134,260					131,699
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$		1,213,939			$		1,182,475			$	1,280,578			$		1,288,422			$		1,280,935
* All share and per share information has been adjusted for a two-for-one stock split completed on November 8, 2019
MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(Dollar amounts in thousands)
		For the Three Months Ended
		March 31,					December 31,					September 30,				June 30,					March 31,
Statements of Income			2020					2019				2019					2019					2019
INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$		12,078			$		12,392			$	12,804			$		12,706			$		12,488
Interest-earning deposits in other institutions			94					124				193					169					187
Federal funds sold			21					22				24					25					7
Investment securities:
Taxable interest			157					197				206					214					179
Tax-exempt interest			629					661				613					553					565
Dividends on stock			30					40				45					53					58
Total interest and dividend income			13,009					13,436				13,885					13,720					13,484
INTEREST EXPENSE
Deposits			2,865					3,014				3,173					3,277					2,945
Short-term borrowings			35					34				42					79					213
Other borrowings			76					80				92					95					96
Total interest expense			2,976					3,128				3,307					3,451					3,254
NET INTEREST INCOME			10,033					10,308				10,578					10,269					10,230
Provision for loan losses			2,740					460				80					110					240
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES			7,293					9,848				10,498					10,159					9,990
NONINTEREST INCOME
Service charges on deposit accounts			553					577				571					530					508
Investment securities gains on sale, net			-					-				4					190					-
(Loss) gain on equity securities			(160	)				82				(32	)				(14	)				58
Earnings on bank-owned life insurance			107					108				109					109					105
Gains on sale of loans			114					148				128					98					59
Other income			460					390				325					386					402
Total noninterest income			1,074					1,305				1,105					1,299					1,132
NONINTEREST EXPENSE
Salaries and employee benefits			3,524					4,049				4,272					4,078					4,124
Occupancy expense			550					580				535					496					553
Equipment expense			273					270				244					291					235
Data processing costs			666					614				580					549					465
Ohio state franchise tax			268					262				262					261					259
Federal deposit insurance expense			123					-				-					100					130
Professional fees			349					448				401					403					431
Advertising expense			209					128				202					200					203
Software amortization expense			141					159				182					152					145
Core deposit intangible amortization			83					85				86					85					85
Other expense			1,066					783				909					867					870
Total noninterest expense			7,252					7,378				7,673					7,482					7,500
Income before income taxes			1,115					3,775				3,930					3,976					3,622
Income taxes			74					634				661					686					611
NET INCOME	$		1,041			$		3,141			$	3,269			$		3,290			$		3,011
MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(Dollar amounts in thousands, except per share and share amounts)
		For the Three Months Ended
		March 31,					December 31,					September 30,				June 30,					March 31,
			2020					2019				2019					2019					2019
Per common share data (5)
Net income per common share - basic	$		0.16			$		0.48			$	0.51			$		0.51			$		0.46
Net income per common share - diluted	$		0.16			$		0.48			$	0.50			$		0.50			$		0.46
Dividends declared per share	$		0.15			$		0.15			$	0.14			$		0.14			$		0.14
Book value per share (period end)	$		20.83			$		21.45			$	21.16			$		20.70			$		20.22
Tangible book value per share (period end) (2) (3)	$		18.16			$		18.78			$	18.48			$		18.04			$		17.55
Dividends declared	$		964			$		964			$	900			$		912			$		909
Dividend yield			3.82	%				2.28	%			2.37	%				2.74	%				2.76	%
Dividend payout ratio			92.60	%				30.69	%			27.53	%				27.72	%				30.19	%
Average shares outstanding - basic			6,417,109					6,423,543				6,458,258					6,502,508					6,498,278
Average shares outstanding - diluted			6,429,443					6,455,387				6,479,066					6,514,946					6,510,568
Period ending shares outstanding			6,369,467					6,423,630				6,423,130					6,485,170					6,512,740
Selected ratios
Return on average assets			0.35	%				1.04	%			1.07	%				1.09	%				1.01	%
Return on average equity			3.01	%				8.87	%			9.41	%				9.79	%				9.36	%
Return on average tangible common equity (2) (4)			3.43	%				10.11	%			10.76	%				11.23	%				10.80	%
Efficiency (1)			63.47	%				61.75	%			63.93	%				63.03	%				64.30	%
Equity to assets at period end			10.93	%				11.65	%			10.61	%				10.42	%				10.28	%
Noninterest expense to average assets			0.61	%				0.61	%			0.64	%				0.62	%				0.62	%
(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
(5) All share and per share information has been adjusted for the two-for-one stock split completed on November 8, 2019
MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
		For the Three Months Ended
		March 31,					December 31,					September 30,				June 30,					March 31,
Yields			2020					2019				2019					2019					2019
Interest-earning assets:
Loans receivable (2)			4.95	%				4.97	%			5.09	%				5.08	%				5.07	%
Investment securities (2)			3.62	%				3.94	%			3.80	%				3.79	%				3.72	%
Interest-earning deposits with other banks			1.40	%				1.65	%			2.31	%				2.21	%				2.26	%
Total interest-earning assets			4.69	%				4.75	%			4.86	%				4.86	%				4.84	%
Deposits:
Interest-bearing demand deposits			0.42	%				0.41	%			0.39	%				0.36	%				0.30	%
Money market deposits			1.41	%				1.41	%			1.43	%				1.40	%				1.58	%
Savings deposits			0.50	%				0.62	%			0.68	%				0.69	%				0.81	%
Certificates of deposit			2.12	%				2.18	%			2.18	%				2.35	%				2.15	%
Total interest-bearing deposits			1.39	%				1.43	%			1.48	%				1.56	%				1.46	%
Non-Deposit Funding:
Borrowings			1.62	%				2.52	%			3.03	%				2.70	%				2.57	%
Total interest-bearing liabilities			1.40	%				1.46	%			1.51	%				1.59	%				1.52	%
Cost of deposits			1.13	%				1.15	%			1.20	%				1.26	%				1.17	%
Cost of funds			1.14	%				1.17	%			1.23	%				1.29	%				1.24	%
Net interest margin (1)			3.63	%				3.66	%			3.72	%				3.65	%				3.69	%
(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			2020					2019				2019					2019					2019
(Dollar amounts in thousands)
Nonaccrual loans	$		8,405			$		8,879			$	10,053			$		10,671			$		10,472
90 day past due and accruing			-					-				-					58					-
Nonperforming loans (1)			8,405					8,879				10,053					10,729					10,472
Other real estate owned			456					155				89					89					126
Nonperforming assets	$		8,861			$		9,034			$	10,142			$		10,818			$		10,598
Allowance for loan losses	$		9,244			$		6,768			$	7,001			$		7,304			$		7,206
Allowance for loan losses/total loans			0.93	%				0.69	%			0.70	%				0.73	%				0.72	%
Net charge-offs:
Quarter-to-date	$		264			$		693			$	383			$		12			$		462
Net charge-offs to average loans, annualized:
Quarter-to-date			0.11	%				0.28	%			0.15	%				0.00	%				0.19	%
Nonperforming loans/total loans			0.84	%				0.90	%			1.01	%				1.07	%				1.04	%
Allowance for loan losses/nonperforming loans			109.98	%				76.22	%			69.64	%				68.08	%				68.81	%
Nonperforming assets/total assets			0.73	%				0.76	%			0.79	%				0.84	%				0.83	%
(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)		March 31,					December 31,					September 30,				June 30,					March 31,
			2020					2019				2019					2019					2019
Stockholders' Equity	$		132,687			$		137,775			$	135,913			$		134,260			$		131,699
Less Goodwill and other intangibles			17,044					17,127				17,212					17,298					17,383
Tangible Common Equity	$		115,643			$		120,648			$	118,701			$		116,962			$		114,316
Shares outstanding			6,369,467					6,423,630				6,423,130					6,485,170					6,512,740
Tangible book value per share	$		18.16			$		18.78			$	18.48			$		18.04			$		17.55
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,
			2020					2019				2019					2019					2019
Average Stockholders' Equity	$		139,208			$		140,475			$	137,843			$		134,836			$		130,450
Less Average Goodwill and other intangibles			17,085					17,169				17,254					17,339					17,422
Average Tangible Common Equity	$		122,123			$		123,306			$	120,589			$		117,497			$		113,028
Net income	$		1,041					3,141				3,269					3,290					3,011
Return on average tangible common equity (annualized)			3.43	%				10.11	%			10.76	%				11.23	%				10.80	%
* All share and per share information has been adjusted for a two-for-one stock split completed on November 8, 2019
MIDDLEFIELD BANC CORP.
Average Balance Sheets
(Dollar amounts in thousands)
		For the Three Months Ended
		March 31,														March 31,
			2020														2019
		Average										Average				Average										Average
		Balance					Interest					Yield/Cost				Balance					Interest					Yield/Cost
Interest-earning assets:
Loans receivable (3)		$	984,034				$	12,078				4.95	%			$	1,000,343				$	12,488				5.07	%
Investment securities (3)			105,894					786				3.62	%				97,484					744				3.72	%
Interest-earning deposits with other banks (4)			41,717					145				1.40	%				45,283					252				2.26	%
Total interest-earning assets			1,131,645					13,009				4.69	%				1,143,110					13,484				4.84	%
Noninterest-earning assets			65,003														60,576
Total assets		$	1,196,648													$	1,203,686
Interest-bearing liabilities:
Interest-bearing demand deposits		$	113,691				$	119				0.42	%			$	96,402				$	72				0.30	%
Money market deposits			158,008					552				1.41	%				194,236					755				1.58	%
Savings deposits			183,137					226				0.50	%				207,848					417				0.81	%
Certificates of deposit			373,866					1,968				2.12	%				320,243					1,701				2.15	%
Short-term borrowings			14,808					35				0.95	%				35,390					213				2.44	%
Other borrowings			12,703					76				2.41	%				13,447					96				2.90	%
Total interest-bearing liabilities			856,213					2,976				1.40	%				867,566					3,254				1.52	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits			195,411														198,286
Other liabilities			5,816														7,384
Stockholders' equity			139,208														130,450
Total liabilities and stockholders' equity		$	1,196,648													$	1,203,686
Net interest income							$	10,033													$	10,230
Interest rate spread (1)												3.29	%													3.32	%
Net interest margin (2)												3.63	%													3.69	%
Ratio of average interest-earning assets to
average interest-bearing liabilities												132.17	%													131.76	%
(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 $189 and $170 for the three months ended March 31, 2020 and 2019, respectively.
(4) Includes dividends received on restricted stock.
		For the Three Months Ended
		March 31,														December 31,
			2020														2019
		Average										Average				Average										Average
		Balance					Interest					Yield/Cost				Balance					Interest					Yield/Cost
Interest-earning assets:
Loans receivable (3)		$	984,034				$	12,078				4.95	%			$	990,106				$	12,392				4.97	%
Investment securities (3)			105,894					786				3.62	%				104,139					858				3.94	%
Interest-earning deposits with other banks (4)			41,717					145				1.40	%				44,816					186				1.65	%
Total interest-earning assets			1,131,645					13,009				4.69	%				1,139,061					13,436				4.75	%
Noninterest-earning assets			65,003														64,303
Total assets		$	1,196,648													$	1,203,364
Interest-bearing liabilities:
Interest-bearing demand deposits		$	113,691				$	119				0.42	%			$	108,015				$	112				0.41	%
Money market deposits			158,008					552				1.41	%				157,117					557				1.41	%
Savings deposits			183,137					226				0.50	%				198,577					309				0.62	%
Certificates of deposit			373,866					1,968				2.12	%				370,404					2,036				2.18	%
Short-term borrowings			14,808					35				0.95	%				5,330					34				2.53	%
Other borrowings			12,703					76				2.41	%				12,602					80				2.52	%
Total interest-bearing liabilities			856,213					2,976				1.40	%				852,045					3,128				1.46	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits			195,411														207,793
Other liabilities			5,816														3,051
Stockholders' equity			139,208														140,475
Total liabilities and stockholders' equity		$	1,196,648													$	1,203,364
Net interest income							$	10,033													$	10,308
Interest rate spread (1)												3.29	%													3.29	%
Net interest margin (2)												3.63	%													3.66	%
Ratio of average interest-earning assets to
average interest-bearing liabilities												132.17	%													133.69	%
(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 $189 and $197 for the three months ended March 31, 2020 and December 31, 2019, respectively.
(4) Includes dividends received on restricted stock.

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