MIDDLEFIELD, Ohio – Middlefield Banc Corp. (NASDAQ:), a bank holding company based in Middlefield, Ohio, has declared a quarterly cash dividend of $0.20 per common share. The dividend for the fourth quarter is set to be paid on December 13, 2024, to shareholders who are on record as of November 29, 2024.
The company, which oversees The Middlefield Banking Company, reported having total assets of $1.86 billion as of September 30, 2024. Middlefield Banc operates through a network of 21 full-service banking centers and an LPL Financial (NASDAQ:)® brokerage office. These facilities serve various communities across Ohio, including Ada, Beachwood, Bellefontaine, and others, and the company also maintains a Loan Production Office in Mentor, Ohio.
The announcement of the dividend follows Middlefield Banc Corp.’s regular evaluations of its financial position and commitment to providing shareholder value. However, the company’s press release also includes forward-looking statements that involve risks and uncertainties that could impact the banking industry and Middlefield Banc Corp.’s operations. These factors range from increased competition among financial institutions, changes in interest rates and economic conditions, to legislative or regulatory changes and technological issues that might affect the company’s financial operations or customers.
Investors are reminded that such forward-looking statements should be considered alongside the potential for material differences between actual and projected performance due to these and other risk factors, such as changes in securities markets and loan loss provisions. Middlefield Banc Corp. has stated that it does not intend to update these forward-looking statements to reflect events or circumstances that arise after the date of the press release.
The information provided in this article is based on a press release statement from Middlefield Banc Corp.
In other recent news, Middlefield Banc Corp has granted performance stock units (PSUs) and restricted stock units (RSUs) to its top executives, namely President and CEO Ronald L. Zimmerly, Jr., and CFO, EVP, and Treasurer Michael C. Ranttila. These awards, part of the company’s 2017 Omnibus Equity Plan, are contingent on the company’s return on average assets performance relative to similar-sized publicly traded banks. The PSUs and RSUs are set to vest after a three-year period ending December 31, 2026, under certain employment conditions.
In addition to these stock awards, Middlefield Banc Corp declared a quarterly cash dividend of $0.20 per common share, demonstrating its commitment to shareholder value. The company has also established a survivor income benefit agreement with CFO Michael C. Ranttila, ensuring a lump-sum payment to his beneficiaries in the event of his passing during active service.
The company’s Q2 financial results exceeded expectations, prompting Keefe, Bruyette & Woods to raise the stock price target. However, Middlefield Banc Corp has also reported a rise in non-performing assets due to a trucking company and an industrial commercial real estate borrower. Despite these challenges, the company’s management is confident about resolving these issues without incurring losses.
In other developments, the company announced that director Darryl E. Mast will not seek reelection to its board in 2025. These recent developments underscore the strategic and financial adjustments within Middlefield Banc Corp.
InvestingPro Insights
Middlefield Banc Corp.’s recent dividend declaration aligns with its track record of consistent shareholder returns. According to InvestingPro data, the company boasts a dividend yield of 3.51% and has maintained dividend payments for 22 consecutive years. This consistency is further underscored by an InvestingPro Tip indicating that MBCN has raised its dividend for 4 consecutive years, demonstrating a commitment to increasing shareholder value over time.
Despite the positive dividend news, investors should note that MBCN’s revenue growth has been challenging. InvestingPro data shows a revenue decline of 6.23% over the last twelve months as of Q3 2024, with a more pronounced quarterly revenue drop of 12.46% in Q3 2024. This aligns with another InvestingPro Tip suggesting that net income is expected to decrease this year.
On a more positive note, MBCN’s stock has shown strong performance recently, with a 21.85% price total return over the past three months and a 25.95% return over six months. This resilience in stock price, despite revenue headwinds, may indicate investor confidence in the company’s long-term prospects.
For readers interested in a deeper analysis, InvestingPro offers 10 additional tips for Middlefield Banc Corp., providing a more comprehensive view of the company’s financial health and market position.
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