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Note 10 - Segment Reporting
 9 Months Ended
Sep. 30, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

NOTE 10 - SEGMENT REPORTING

 

The Company has one business segment: Bank Segment. The Bank Segment provides customers with a broad range of banking services, including various deposit and lending products to consumer and commercial customers. The Company’s chief operating decision maker (CODM) is the Chief Executive Officer.

 

The following table shows selected financial data for the Bank Segment for the three and nine months ended September 30, 2025, and 2024. The accounting policies of the segment are the same as those followed by the Company. The information is derived from the internal financial reporting records that are used to monitor and manage the Company's financial performance. The segment expense categories are based on the information regularly provided to the CODM and are considered significant to the segment’s operations. The Bank Segment excludes the income, expenses, and total assets of the parent company, Middlefield Banc Corp, and the parent company’s nonbank asset resolution subsidiary, EMORECO, Inc., which are shown as reconciling items in the following table. There is no authoritative guidance for management accounting equivalent to GAAP, and therefore, the financial results of our business segment are not necessarily comparable with similar information presented by other companies. 

 

  

For the Three Months Ended September 30,

 
  

2025

  

2024

 
      

Reconciling

          

Reconciling

     

(Dollar amounts in thousands)

 

Bank

  

Items

  

Total

  

Bank

  

Items

  

Total

 
                         

Net interest income

 $17,693  $(128) $17,565  $15,218  $(145) $15,073 

Noninterest income

  2,310   14   2,324   1,719   24   1,743 

Total revenue

  20,003   (114)  19,889   16,937   (121)  16,816 

Provision for (recovery of) credit losses

  392   -   392   2,234   -   2,234 

Salaries and employee benefits

  6,228   655   6,883   5,899   302   6,201 

Occupancy expenses

  604   -   604   627   -   627 

Data processing costs

  1,240   -   1,240   1,248   -   1,248 

Other noninterest expense (1)

  3,765   606   4,371   3,142   653   3,795 

Income tax provision (benefit)

  1,367   (288)  1,079   597   (226)  371 

Net income (loss)

 $6,407  $(1,087) $5,320  $3,190  $(850) $2,340 

Total assets

 $1,975,480  $3,413  $1,978,893  $1,855,461  $2,174  $1,857,635 

 

  

For the Nine Months Ended September 30,

 
  

2025

  

2024

 
      

Reconciling

          

Reconciling

     

(Dollar amounts in thousands)

 

Bank

  

Items

  

Total

  

Bank

  

Items

  

Total

 
                         

Net interest income

 $51,456  $(356) $51,100  $45,573  $(448) $45,125 

Noninterest income

  7,356   (10)  7,346   5,332   (33)  5,299 

Total revenue

  58,812   (366)  58,446   50,905   (481)  50,424 

Provision for (recovery of) credit losses

  (19)  -   (19)  2,185   -   2,185 

Salaries and employee benefits

  18,524   1,641   20,165   17,893   752   18,645 

Occupancy expenses

  1,958   -   1,958   1,780   -   1,780 

Data processing costs

  3,784   -   3,784   3,665   -   3,665 

Other noninterest expense (1)

  11,209   1,826   13,035   9,532   2,116   11,648 

Income tax provision (benefit)

  4,021   (805)  3,216   2,533   (703)  1,830 

Net income (loss)

 $19,335  $(3,028) $16,307   13,317  $(2,646) $10,671 

Total assets

 $1,975,480  $3,413  $1,978,893  $1,855,461  $2,174  $1,857,635 

 

(1)

 

Includes expenses that are in the reported measure of net income but not specifically provided to the CODM. Other noninterest expense is composed of expenses such as equipment expense, Ohio state franchise tax, professional fees, advertising expense, and other expenses.

 

The CODM utilizes net income as the primary measure to allocate resources during the annual budget process. This measure is used by CODM to evaluate the performance of the business segment, with a focus on net interest income, provision for credit losses, noninterest income, and noninterest expense. Net income is compared to both budgeted and comparative historical amounts on a monthly basis. Drivers of any significant variations from budget are assessed. The measure of segment assets is reported as total assets.