MBCN Middlefield Banc Corporation

Exhibit 99

15985 East High Street

P. O. Box 35

Middlefield, Ohio 44062

Phone: 440/632-1666 FAX: 440/632-1700

www.middlefieldbank.bank

Middlefield Banc Corp. Reports 2023 First Half Financial Results

MIDDLEFIELD, OHIO, July 24, 2023◆◆◆◆ Middlefield Banc Corp. (NASDAQ: MBCN) reported financial results for the 2023 first half and second quarter ended June 30, 2023.

2023 First Half Financial Highlights Include (on a year-over-year basis unless noted):

“I’m proud to report that Middlefield achieved record second-quarter and year-to-date results, including net income, assets, loans, and deposits. These results are especially encouraging as we successfully navigate the rapid rise in interest rates over the past 12 months, significant competition for deposits, and an increasingly fluid business environment. Our ability to withstand these macro-level headwinds is reflected in our strong balance sheet, robust asset quality, and diverse core deposit base, as well as the benefits and added scale of the Liberty Bancshares, Inc. merger. Most importantly, our success through the first six months of 2023 is a direct result of the dedication and expertise of our team members and the value we provide our local communities,” stated James R. Heslop, II, Chief Executive Officer.

“As we look towards the second half of 2023, we expect higher rates and competition for deposits will increase our cost of funds in the coming quarters. Despite these trends, we believe our compelling net interest margin and larger loan portfolio will support strong levels of interest income throughout the remainder of the year. Middlefield’s strong balance sheet and highly profitable financial model provides us with the flexibility to capitalize on opportunities for organic growth, embrace new technologies, and expand our team with top talent. We understand the importance of maintaining a prudent focus on asset quality and managing expenses, and we are committed to upholding these principles as we navigate the evolving landscape,” concluded Mr. Heslop.

Income Statement

Net interest income for the 2023 first half increased 44.1% to $33.9 million, compared to $23.5 million for the same period last year. Year-to-date, the net interest margin was 4.30%, compared to 3.91% for the same period last year. Net interest income for the 2023 second quarter increased 44.3% to $17.4 million, compared to $12.0 million for the 2022 second quarter. Net interest income for the 2023 second quarter benefited from a one-time $539,000 purchase accounting adjustment for loan valuations associated with the Liberty Bancshares, Inc. merger. The net interest margin for the 2023 second quarter was 4.34%, compared to 4.02% for the same period of 2022.

Pre-tax income during last year’s first half and second quarter benefited from $1.2 million and $580,000, respectively, of accelerated net fees associated with the Paycheck Protection Program (“PPP”).

For the 2023 first half, noninterest income was $3.3 million, compared to $2.8 million for the same period last year. Noninterest income for the 2023 second quarter was $1.6 million, compared to $1.4 million for the same period last year.

For the 2023 first half, noninterest expense was $23.8 million, compared to $16.8 million for the same period last year. Operating costs in the 2023 second quarter were $12.1 million from $8.5 million for the 2022 second quarter. Higher second-quarter and first-half expenses were primarily associated with the Liberty Bancshares, Inc. merger. The Company’s efficiency ratio for the 2023 first half was 62.73%, compared to 62.17% for the same period last year, and for the 2023 second quarter was 61.27%, compared to 61.83% for last year’s second quarter.

Net income for the 2023 first half ended June 30, 2023, was $10.0 million, or $1.23 per diluted share, compared to $7.9 million, or $1.35 per diluted share for the same period last year. Net income for the 2023 second quarter ended June 30, 2023, was $5.1 million, or $0.63 per diluted share, compared to $4.1 million, or $0.70 per diluted share, for the same period last year.

Pre-tax, pre-provision net income was $13.3 million, an increase of 40.1% from $9.5 million last year. Pre-tax, pre-provision net income was a quarterly record of $6.9 million, an increase of 41.3% from $4.9 million last year.

Balance Sheet

Total assets at June 30, 2023, increased 35.4% to $1.75 billion, compared to $1.29 billion at June 30, 2022. Net loans at June 30, 2023, increased 44.2% to $1.39 billion, compared to $963.4 million at June 30, 2022. The 44.2% increase in net loans was primarily due to the Liberty Bancshares, Inc. merger.

Total deposits at June 30, 2023, were $1.43 billion, compared to $1.15 billion at June 30, 2022. The 24.8% increase in deposits was primarily due to the Liberty Bancshares, Inc. merger. At June 30, 2023, the Company had brokered deposits of $53.5 million, compared to $5.0 million at June 30, 2022. The investment portfolio was $167.2 million at June 30, 2023, compared with $172.0 million at June 30, 2022.

Michael Ranttila, Chief Financial Officer, stated, “Our legacy of maintaining a robust balance sheet continues to produce strong financial results while elevating our position as a trusted and stable financial institution. We ended the quarter with $59.1 million in cash and cash equivalents, $167.2 million in investment securities, and $582.9 million of maximum borrowing capacity at the Federal Home Loan Bank. In addition, we maintain a modest level of unrealized losses on all securities, which was 10.5% of total capital at June 30, 2023. We believe we have ample liquidity to navigate a more complex economic environment while supporting our growth and capital allocation strategies.”

Middlefield’s CRE portfolio included the following categories at June 30, 2023:

Middlefield’s commercial real estate office credit exposure represented 5.2% of the Company’s total loan portfolio at June 30, 2023, with a weighted average loan-to-value of approximately 53% and an average loan of $1.2 million. In addition, Middlefield’s office exposure was within Ohio, with approximately 96% of the Company’s office portfolio in suburban markets.

Stockholders’ Equity and Dividends

At June 30, 2023, stockholders’ equity was $197.2 million compared to $128.2 million at June 30, 2022. The 53.8% year-over-year increase in stockholders’ equity was primarily due to the Liberty Bancshares, Inc. merger, partially offset by an increase in the unrealized loss on the available-for-sale investment portfolio and the Company’s stock repurchase program. On a per-share basis, shareholders’ equity at June 30, 2023, was $24.38 compared to $22.07 at June 30, 2022.

At June 30, 2023, tangible stockholders’ equity⁽¹⁾ was $153.9 million, compared to $111.9 million at June 30, 2022. On a per-share basis, tangible stockholders’ equity⁽¹⁾ was $19.02 at June 30, 2023, compared to $19.26 at June 30, 2022.

Through the 2023 first half, the Company declared cash dividends of $0.40 per share, a 17.6% increase from $0.34 per share for the same period last year.

At June 30, 2023, the Company had an equity-to-assets ratio of 11.26%, compared to 9.91% at June 30, 2022.

Asset Quality

For the 2023 first half and second quarter, the Company recorded provisions for credit losses of $1.3 million and $814,000, respectively, versus no provisions for credit losses for the same periods last year.

Net charge-offs were $111,000 or 0.03% of average loans, annualized, during the 2023 second quarter, compared to net recoveries of $58,000, or 0.02% of average loans, annualized, at June 30, 2022. Year-to-date net charge-offs were $103,000, or 0.01% of average loans, annualized, compared to net recoveries of $208,000, or 0.04% of average loans, annualized for the six-months ended June 30, 2022.

Nonperforming loans at June 30, 2023, were $7.1 million, compared to $4.7 million at June 30, 2022. Nonperforming assets at June 30, 2023, were $12.9 million, compared to $11.5 million at June 30, 2022. The allowance for credit losses at June 30, 2023, stood at $20.6 million, or 1.46% of total loans, compared to $14.6 million, or 1.49% of total loans at June 30, 2022.

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 $1.75 billion at June 30, 2023. The Bank operates 21 full-service banking centers and an LPL Financial^® brokerage office serving Ada, Beachwood, Bellefontaine, Chardon, Cortland, Dublin, Garrettsville, Kenton, Mantua, Marysville, 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⁾ NON-GAAP FINANCIAL MEASURES

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.

FORWARD-LOOKING STATEMENTS

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) changes in the securities markets; or (8) 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.

MIDDLEFIELD BANC CORP.

Consolidated Selected Financial Highlights

(Dollar amounts in thousands, unaudited)

MIDDLEFIELD BANC CORP.

Consolidated Selected Financial Highlights

(Dollar amounts in thousands, unaudited)

MIDDLEFIELD BANC CORP.

Consolidated Selected Financial Highlights

(Dollar amounts in thousands, except per share and share amounts, unaudited)

MIDDLEFIELD BANC CORP.

Consolidated Selected Financial Highlights

(unaudited)

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

MIDDLEFIELD BANC CORP.

Average Balance Sheets

(Dollar amounts in thousands, unaudited)