Middlefield Banc Corp. (MBCN): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise and really see how a solid regional player like Middlefield Banc Corp. (MBCN) actually makes its money, especially right now with that Farmers National Banc Corp. merger on the horizon. Honestly, understanding a bank's engine isn't about jargon; it's about mapping its core engine-its Business Model Canvas. For MBCN, as of late 2025, that engine is clearly built on relationship lending, servicing a $1.6 billion loan book across 21 Ohio centers, all while managing $2.0 billion in total assets. We've broken down exactly where their value comes from-from local loan decisions to wealth management fees-so you can see the play-by-play before you make any investment decision. Dive into the nine blocks below to see the whole picture, defintely.

Middlefield Banc Corp. (MBCN) - Canvas Business Model: Key Partnerships

You're looking at the relationships Middlefield Banc Corp. relies on to execute its strategy, especially as it navigates a major acquisition. These partnerships are crucial for scale, specialized services, and local presence, so let's break down the hard numbers we see as of late 2025.

Farmers National Banc Corp. (FMNB) for Pending Merger Integration

The most significant partnership is the definitive merger agreement with Farmers National Banc Corp. announced on October 22, 2025. This is an all-stock deal where each share of Middlefield Banc Corp. common stock converts into 2.6 shares of Farmers National Banc Corp. common stock. Based on Farmers National Banc Corp.'s closing share price of $13.91 on October 20, 2025, the transaction value was approximately $299.0 million, equating to $36.17 per Middlefield Banc Corp. share. This deal is expected to close by the end of the first quarter of 2026. At that point, the combined entity projects assets of approximately $7.4 billion and 83 branch locations across Ohio and western Pennsylvania. As of September 30, 2025, Middlefield Banc Corp. held total assets of about $2.0 billion and stockholders' equity of $224.1 million. This merger is designed to create a larger franchise, leveraging Farmers National Banc Corp.'s existing wealth management assets under care, which stood at $4.6 billion as of September 30, 2025.

Here's a quick look at the scale of the entities involved just prior to closing:

Metric	Middlefield Banc Corp. (MBCN) as of 9/30/2025	Farmers National Banc Corp. (FMNB) Pro Forma Estimate
Total Assets	Approx. $2.0 billion	Approx. $7.4 billion
Total Deposits	$1.62 billion	Not explicitly stated for pro forma
Stockholders' Equity	$224.1 million	Not explicitly stated for pro forma
Branch Locations	21 full-service banking centers + 1 LPO	Approx. 83

Financial Advisors (Raymond James) and Legal Counsel for M&A

For complex transactions like the Farmers National Banc Corp. merger, specialized external expertise is a given. While specific engagement fees for legal counsel related to the October 2025 merger announcement aren't public here, we know that firms like Raymond James provide the necessary transactional and strategic advisory services. Raymond James itself notes that its advisory services leverage deep industry knowledge. For other services, like Fee-Only Financial Planning, Raymond James advisors can be engaged at an hourly rate typically between $200 - $300 per hour. Furthermore, the announcement of the merger has already prompted legal inquiries from M&A class action firms, indicating the level of external legal scrutiny involved in such a deal.

Correspondent Banks for Liquidity and Specialized Services

Middlefield Banc Corp. manages its funding mix actively, which involves relationships with entities like the Federal Home Loan Bank (FHLB) for liquidity. As of March 31, 2025, the company had already reduced its FHLB advances balance by $62.4 million from the December 31, 2024, level. This action left Middlefield Banc Corp. ending the first quarter of 2025 with $346.9 million in additional borrowing capacity, signaling excellent internal liquidity levels supported by these wholesale funding channels.

The reliance on these funding sources is clear:

• Reduced FHLB advances by $62.4 million from year-end 2024 to Q1 2025.
• Maintained $346.9 million in additional borrowing capacity as of March 31, 2025.
• Net interest income for Q3 2025 was driven by strong loan growth and a decrease in FHLB advances.

LPL Financial for Brokerage and Wealth Management Services

Middlefield Banc Corp. partners with LPL Financial to offer investment services directly through its banking footprint. This is a core part of their noninterest income stream. As of late 2025, The Middlefield Banking Company operates an LPL Financial® brokerage office alongside its 21 full-service banking centers. For the third quarter of 2025, Middlefield Banc Corp.'s noninterest income was $2.3 million, up from $1.7 million in the same period last year, showing growth in these fee-based services.

Local Community Organizations for Charitable and Development Initiatives

The commitment to community is a stated value, and this translates into tangible local interactions. A concrete example of a partnership with a local governmental entity occurred in Q3 2025 when Middlefield Banc Corp. completed a real estate exchange with the City of Westerville, Ohio. This specific transaction resulted in a one-time, non-cash gain of $1.2 million for the bank. The relocation of the Westerville office itself is on track to open in the fourth quarter of 2025, showing ongoing reinvestment in the local physical footprint.

The bank's operational footprint as of September 30, 2025, spans numerous Ohio communities, which implies a wide network of local relationships:

• Banking centers serve locations including Ada, Beachwood, Dublin, and Marysville.
• The bank also operates a Loan Production Office in Mentor, Ohio.
• The merger expands the footprint into Central and Western Ohio markets, including the Columbus region.

Finance: draft the pro forma balance sheet impact of the FMNB merger by next Tuesday.

Middlefield Banc Corp. (MBCN) - Canvas Business Model: Key Activities

You're looking at the core actions Middlefield Banc Corp. is taking right up to the end of 2025, especially with that big merger announcement hanging in the air. These activities are what keep the lights on and the balance sheet growing before the transition to Farmers National Banc Corp. is complete.

The primary engine is definitely lending and managing those customer relationships. The focus is on originating and servicing loans, which, as of late 2025, is anchored by a loan portfolio size of $1.6 billion.

• Commercial and consumer loan origination and servicing ($1.6 billion in loans).
• Commercial and industrial loans grew by 26.4% year-over-year as of the nine months ended September 30, 2025.
• Total loans reached a record $1.61 billion as of September 30, 2025.

Liability management, or core deposit gathering, is the other side of the balance sheet coin. You need deposits to fund those loans, and Middlefield Banc Corp. was managing that mix while optimizing funding costs. Total deposits stood at $1.6 billion on September 30, 2025. The net interest margin (NIM) for the third quarter of 2025 was 3.79%.

Running a bank means constant attention to the rules and the risks. This activity is non-negotiable, especially for a community bank operating across Ohio. As of September 30, 2025, the equity-to-assets ratio stood at 11.33%. For the nine months ending September 30, 2025, the company recorded a net recovery of credit losses of $19,000.

Physical presence matters for community banking, and Middlefield Banc Corp. maintains a significant footprint. The bank operates 21 full-service banking centers. This network supports the delivery of services like treasury management, merchant card processing, and remote deposit capture.

The final, critical activity in late 2025 is managing the announced strategic shift. The definitive merger agreement with Farmers National Banc Corp. was signed on October 22, 2025, with an expected closing by the end of the first quarter of 2026. This requires immediate focus on integration planning.

• Merger transaction valued at approximately $299.0 million based on Farmers' closing share price of $13.91 on October 20, 2025.
• The Westerville office relocation is on track to open in the fourth quarter of 2025, an internal operational milestone preceding the merger close.

Here's a quick look at some key balance sheet and performance metrics as of the latest reporting periods in 2025:

Metric	Value (as of Sept 30, 2025)	Value (as of June 30, 2025)
Total Assets	$1.98 billion	$1.92 billion
Total Loans	$1.6 billion	$1.58 billion
Total Deposits	$1.6 billion	$1.59 billion
Stockholders' Equity	$224.1 million	N/A
Q3 2025 Diluted EPS	$0.65	$0.76 (Q2 2025)

Finance: draft 13-week cash view by Friday.

Middlefield Banc Corp. (MBCN) - Canvas Business Model: Key Resources

The Key Resources for Middlefield Banc Corp. (MBCN) are a blend of tangible financial strength, a physical footprint deeply embedded in Ohio markets, and intangible expertise built over a long history.

The financial foundation is substantial, providing the capital base for lending and operations. As of the nine months ended September 30, 2025, Middlefield Banc Corp. reported total assets reaching a record $1.98 billion. This balance sheet strength supports their market activities.

The tangible capital backing the operations is also a critical resource. As of September 30, 2025, the stockholders' equity stood at $224.1 million. This figure underpins the bank's stability and capacity for growth initiatives, such as the announced merger with Farmers National Banc Corp.

The physical presence and geographic reach are central to their community banking model. Middlefield Banc Corp. maintains a network of 21 full-service banking centers and one Loan Production Office (LPO) in Mentor, Ohio, serving its markets across Northeast, Central, and Western Ohio. This physical network is directly tied to their ability to generate core deposits and loan demand.

The non-physical resources are what differentiate Middlefield Banc Corp. in a competitive environment. These include deep local market expertise and established customer relationships, which are described as a strategic imperative for securing stable, core deposits. This focus is evidenced by year-over-year loan growth, with total loans reaching a record $1.61 billion as of September 30, 2025.

Finally, the operational backbone relies on technology infrastructure. The bank has been making investments in its platform to support its strategy. For instance, during the first quarter of 2025, the company made significant upgrades to its infrastructure to support its multi-year technology road map.

Here is a summary of the key quantifiable resources as of late 2025:

Resource Category	Metric	Value as of Q3 2025
Financial Strength	Total Assets	$1.98 billion
Financial Strength	Stockholders' Equity	$224.1 million
Physical Footprint	Full-Service Banking Centers	21
Physical Footprint	Loan Production Offices (LPOs)	1
Lending Capacity	Total Loans	$1.61 billion

The intangible assets supporting the business model include:

• Local decision-making as a competitive advantage.
• A 120+ year history of disciplined underwriting.
• Focus on growing commercial and industrial loans (up 26.4% year-over-year as of Q3 2025).
• Core banking technology and digital platforms undergoing infrastructure upgrades.
• A strong net interest margin of 3.79% for the nine months ended September 30, 2025.

Finance: draft the pro forma tangible book value per share post-merger by Monday.

Middlefield Banc Corp. (MBCN) - Canvas Business Model: Value Propositions

You're building a strategy around what Middlefield Banc Corp. actually offers its customers and stakeholders. The value proposition isn't just a list of services; it's the tangible benefit derived from their specific operational model, which centers on deep Ohio roots and personalized service.

Personalized, relationship-driven community banking service is central to Middlefield Banc Corp.'s offering. This isn't a faceless national operation; it's a local presence built over a long time. The bank operates a network of 21 full-service banking centers across Central, Western, and Northeast Ohio, serving communities from Ada to Westerville. This physical footprint supports the relationship focus, which is a core differentiator against larger, more distant institutions.

The commitment to local service directly supports Local decision-making for faster loan approvals. This localized approach is designed to foster long-term customer relationships and support regional economic well-being. The results of this model show in their lending success; total loans reached a record of approximately $1.61 billion for the nine months ended September 30, 2025, representing a 6.8% rise year-over-year. This growth is fueled by disciplined underwriting within their specific market area.

Middlefield Banc Corp. provides a Full suite of commercial, consumer, and mortgage lending products. The loan growth seen through 2025 was primarily driven by originations in residential real estate loans, home equity lines of credit, and non-owner occupied loans. Furthermore, the bank offers specialized services to enhance client relationships, including treasury management, merchant card processing, and remote deposit capture.

Clients also gain Access to wealth management and brokerage services via LPL Financial. Registered representatives offer securities and advisory services through LPL Financial LLC, a registered investment advisor and broker-dealer, while The Middlefield Banking Company provides referrals. The services available through this channel include access to common and preferred stocks, corporate and municipal bonds, mutual funds, and retirement planning.

Finally, the proposition of Stability and trust as a long-standing Ohio-based institution is quantified by its history and recent performance. The Middlefield Banking Company originated in 1901, providing over a century of operational history. This stability translates into tangible shareholder returns; for instance, $100 invested from December 31, 2011, to March 31, 2025, achieved a total return of $491, outperforming the KBW Regional Banking Index by 51.6% over that period.

Here's a quick look at the financial scale supporting these value propositions as of late 2025:

Metric	Value as of September 30, 2025 (Approx.)	Value as of March 31, 2025
Total Assets	$2.0 billion	$1.89 billion
Total Loans	$1.61 billion	$1.55 billion
Total Deposits	$1.6 billion	$1.54 billion
Net Interest Margin (NIM)	3.79% (9 Months YTD)	3.69% (Q1)
Tangible Book Value Per Share	$22.62 (As of Sept 30, 2025 YTD)	$21.29 (As of March 31, 2025)

The operational success underpinning these values is evident in the earnings performance:

• Diluted Earnings Per Share (EPS) for Q3 2025 was $0.65.
• Diluted EPS for the nine months ended September 30, 2025, reached $2.01.
• Pre-tax, pre-provision earnings increased by 37.3% year-to-date 2025.
• The quarterly cash dividend was increased by 5% earlier in 2025.
• Noninterest income for Q2 2025 was $3.1 million, up from $1.8 million the prior year.

The bank's focus on disciplined risk control is also a key value driver. For instance, the allowance for credit losses to total loans was 1.44% at March 31, 2025, showing they are well-reserved against potential credit issues.

Middlefield Banc Corp. (MBCN) - Canvas Business Model: Customer Relationships

You're running a community bank, so your customer relationships aren't just a line item; they're the whole business. For Middlefield Banc Corp. (MBCN), the relationship strategy centers on deep local presence and targeted commercial support, which clearly paid off with a year-to-date diluted EPS of $2.01 through Q3 2025.

Dedicated relationship managers for commercial clients

The focus on high-value commercial relationships is evident in the growth metrics. Middlefield Banc Corp. has been actively working on improving its mix of commercial and industrial loans, which were the biggest drivers of loan growth since September 2024. This focus requires dedicated, high-touch service, which is the hallmark of a relationship-driven commercial banking approach. The results show this strategy is working, with commercial and industrial loans increasing by 26.4% year-over-year. This kind of growth doesn't happen with automated emails; it requires dedicated bankers who know the local market.

High-touch, in-person service at branch locations

The physical footprint is central to the high-touch model. As of September 30, 2025, Middlefield Banc Corp. operated 21 full-service banking centers and an LPL Financial® brokerage office across its Ohio markets. This network supports the community banking model that President and CEO Ronald L. Zimmerly, Jr. emphasized as a core strength. The bank also operates a Loan Production Office in Mentor, Ohio. This physical presence is the bedrock for the in-person service that builds trust with individuals and small businesses in Central, Western, and Northeast Ohio.

Automated digital self-service for routine transactions

While the core is high-touch, the infrastructure supports efficiency. Middlefield Banc Corp. made significant upgrades to its infrastructure in Q1 2025 to support its multi-year technology roadmap. This investment helps ensure that routine transactions can be handled efficiently through digital channels, freeing up branch staff to focus on complex, relationship-building activities like commercial lending and wealth management. Total wealth management Assets Under Care at September 30, 2025, stood at $4.6 billion.

Community engagement and local event sponsorship

The commitment to community is a stated core value, which translates directly into customer loyalty in the local markets they serve. The bank's strategy is to be the largest independent community bank in its region, which requires deep local integration. This commitment is reflected in the bank's overall performance, with total assets reaching a record $1.98 billion as of September 30, 2025.

The scale of the combined entity post-merger shows the increased capacity to support the region:

Metric	Middlefield Banc Corp. (As of 9/30/2025)	Pro-forma with FMNB (Estimated)
Total Assets	$1.98 billion	$7.4 billion
Total Deposits	$1.6 billion	$6.1 billion
Branch Locations	21 full-service centers	83 locations

Direct communication regarding the FMNB merger

The most significant recent relationship event was the announcement of the definitive merger agreement with Farmers National Banc Corp. (FMNB) on October 22, 2025. This was communicated directly to shareholders and the public via a joint media release. The transaction, valued at approximately $299.0 million, or $36.17 per Middlefield share based on the October 20, 2025, closing price, involves an all-stock exchange where each Middlefield share converts into 2.6 shares of Farmers common stock. The communication strategy included hosting a conference call on October 22, 2025, at 9:00 a.m. ET, for participants to discuss the acquisition. The expected closing date is the end of the first quarter of 2026.

The customer relationship strategy going forward will be managed through the lens of integration, which Farmers National Banc Corp. has a track record of executing, having completed six bank acquisitions in the last 10 years.

• The merger is expected to close by the end of the first quarter of 2026.
• Farmers intends to appoint two Middlefield directors to the combined Farmers' Board of Directors.
• The transaction is subject to receipt of Middlefield and Farmers shareholder approvals and customary regulatory approvals.

Finance: finalize the pro-forma organizational chart for customer-facing roles by end of January 2026.

Middlefield Banc Corp. (MBCN) - Canvas Business Model: Channels

You're looking at how Middlefield Banc Corp. gets its value proposition-community-focused banking-to its customers across Ohio. The channel strategy clearly balances a strong physical presence with necessary digital tools, all aimed at supporting their reported 6.8% year-over-year total loan growth to a record $1.61 billion as of September 30, 2025.

The physical network is the bedrock of Middlefield Banc Corp.'s channel strategy, ensuring deep community penetration throughout Central, Western, and Northeast Ohio. As of the nine months ended September 30, 2025, the company maintained a significant brick-and-mortar footprint.

Channel Component	Quantity/Detail	Key Metric Context (as of 9/30/2025)
Full-Service Branch Locations	21	Total Assets: $1.98 billion
LPL Financial® Brokerage Office	1	Total Loans: $1.61 billion
Loan Production Office (LPO)	1 (Mentor, Ohio)	Commercial & Industrial Loans grew 26.4% Y/Y

The 21 full-service banking centers are strategically placed to serve specific Ohio communities. This physical reach is critical for relationship-driven business, which is showing up in the loan book.

• Ada Office
• Beachwood Office
• Bellefontaine North Office
• Bellefontaine South Office
• Chardon Office
• Cortland Office
• Dublin Office
• Garrettsville Office
• Kenton Office
• Mantua Office
• Marysville Office
• Middlefield - Main Branch Office
• Middlefield - West Branch Office
• Newbury Office
• Orwell Office
• Plain City Office
• Powell Office
• Solon Office
• Sunbury Office
• Twinsburg Office
• Westerville Office (Relocation on track for Q4 2025)

For digital access, Middlefield Banc Corp. relies on its online and mobile banking platforms. While specific user adoption rates aren't public, the focus on infrastructure investment suggests these platforms are key to modern service delivery. The availability of customer support for these channels is listed as weekdays from 8 am-6 pm and Saturday from 8 am-1 pm, reachable at 888.801.1666.

The Loan Production Office (LPO) in Mentor, Ohio, is explicitly noted as a channel for commercial growth. This specialized office supports the broader strategy that resulted in commercial and industrial loans increasing by 26.4% year-over-year as of September 30, 2025. This targeted physical presence complements the hiring of new commercial relationship managers announced in July 2025, which directly feeds this channel.

Regarding the direct sales force for commercial and wealth management, the channel is supported by personnel additions focused on relationship management across Northeast and Central Ohio. For example, a Northeast Ohio Commercial Market Executive was appointed to oversee commercial growth strategy and relationship management across that footprint. This human capital deployment is a direct channel for high-value services, underpinning the loan growth figures.

Access to cash and basic transactions is facilitated through the ATM network access, which is integrated with the 21 branch locations. The company also operates an LPL Financial® brokerage office, which acts as an additional, specialized channel for investment and wealth services alongside the main banking centers.

Middlefield Banc Corp. (MBCN) - Canvas Business Model: Customer Segments

You're looking at the core clientele Middlefield Banc Corp. serves across its Ohio footprint as of late 2025. The bank's strategy is deeply rooted in its local presence, operating 21 full-service banking centers across Central, Western, and Northeast Ohio markets.

The overall scale of the customer base can be inferred from the balance sheet as of September 30, 2025, where Middlefield Banc Corp. held total deposits of $1.6 billion, supporting total loans of $1.61 billion.

Small-to-medium sized businesses (SMBs) in Northeast and Central Ohio

This segment is a primary driver of loan growth, with the company focusing on originating commercial and industrial loans. The strategic focus on growing commercial and industrial loans contributed to a 6.8% rise in total loans, reaching $1.61 billion for the nine months ended September 30, 2025. The bank emphasizes lending within its market area and a conservative underwriting philosophy. The Commercial Real Estate (CRE) portfolio, a key component of commercial lending, was valued at $687.8 million as of March 31, 2025. This CRE portfolio is segmented to serve business needs:

CRE Loan Category	Percentage of CRE Portfolio (as of March 31, 2025)
Non-Owner Occupied	60%
Owner Occupied	27%
Multifamily	13%

Retail consumers and households in local branch markets

Retail customers provide the foundational deposit base. As of June 30, 2025, noninterest-bearing demand deposits-often associated with transactional consumer and small business accounts-represented 24.2% of total deposits. The overall deposit base was $1.59 billion at June 30, 2025. Consumer lending is supported by residential real estate loans and home equity lines of credit, which were noted as drivers of loan growth in the first quarter of 2025. The bank operates its retail services through its network of 21 full-service banking centers.

• The bank's footprint includes markets in counties with above average median household income and median value of owner-occupied housing.
• The quarterly cash dividend was increased by 5% to $0.21 per share beginning in the first quarter of 2025.

Commercial real estate investors and developers

This group is served through the CRE loan segment, which includes both owner-occupied and non-owner occupied properties. The total CRE portfolio was $687.8 million at March 31, 2025. The composition shows a heavy weighting toward investment properties, with Non-Owner Occupied loans making up 60% of that portfolio. Furthermore, 74.2% of the CRE portfolio was variable rate as of March 31, 2025.

High-net-worth individuals utilizing wealth management services

Middlefield Banc Corp. offers investment services through an LPL Financial® brokerage office. While the bank has subsidiaries like Middlefield Investments, Inc. to manage an investment portfolio, specific assets under care or client numbers for the wealth management division were not explicitly detailed in the latest public reports available through September 2025.

The bank's focus is on enhancing delivery in both personal and commercial channels. The diluted earnings per share for the first nine months of 2025 reached $2.01.

Middlefield Banc Corp. (MBCN) - Canvas Business Model: Cost Structure

You're looking at the cost side of Middlefield Banc Corp.'s operations as of late 2025, right before the planned merger closes in Q1 2026. For a bank, the cost structure is dominated by funding costs-what it pays for the money it lends out-and the operational expenses to run the physical and digital footprint.

The funding cost anchor here is the liability side of the balance sheet. As of September 30, 2025, Middlefield Banc Corp. held total deposits of approximately $1.6 billion. The Interest expense on $1.6 billion in deposits is the single largest variable cost, though the six-month period ending June 30, 2025, showed net interest income growth, partly due to a decline in rates for deposits.

For the core operating expenses, which cover personnel, occupancy, and technology, the reported figures give us a good look at the run rate before the Farmers National Banc Corp. acquisition. For the six months ended June 30, 2025, the total noninterest expense was $25.8 million. This figure bundles the costs you are asking about.

Here's a snapshot of the key cost drivers and scale metrics we can confirm:

Cost Component Proxy/Metric	Latest Available Financial Data (2025)
Total Deposits (Basis for Interest Expense)	$1.6 billion (as of 9/30/2025)
Total Noninterest Expense (H1 2025 Proxy)	$25.8 million (for six months ended 6/30/2025)
Branch Network Footprint (Pre-Merger)	21 full-service banking centers
Transaction Value of Pending Merger	$299.0 million (All-stock deal value)

Breaking down those operating costs is tough without the full 10-Q, but we know the physical structure that drives occupancy and personnel costs. Middlefield Banc Corp. operates its network across Ohio through:

• 21 full-service banking centers.
• One LPL Financial® brokerage office.
• One Loan Production Office in Mentor, Ohio.

The personnel costs, which include salaries and benefits, are directly tied to staffing these locations plus the corporate overhead. While the exact salary expense isn't isolated, the total noninterest expense of $13.7 million in the second quarter of 2025 covers all staff, rent, utilities, and tech upgrades. Speaking of tech, the company noted significant infrastructure upgrades during the first quarter of 2025 as part of its multi-year technology road map. These regulatory compliance and technology infrastructure expenses are baked into that quarterly spend.

Finally, regarding the merger, the transaction itself carries costs that are separate from ongoing operations. The definitive agreement to merge with Farmers National Banc Corp. is valued at $299.0 million. While the specific legal and financial advisory fees paid by Middlefield Banc Corp. aren't itemized here, these one-time costs are a definite drain on capital leading up to the expected closing in the first quarter of 2026. The deal structure itself is an all-stock transaction.

Finance: draft the projected interest expense for Q4 2025 based on the $1.6 billion deposit base by next Tuesday.

Middlefield Banc Corp. (MBCN) - Canvas Business Model: Revenue Streams

You're looking at the core ways Middlefield Banc Corp. brings in money as of late 2025. For a community bank, the lion's share of revenue comes from the difference between what they earn on loans and what they pay out on deposits-that's the Net Interest Income (NII).

The loan portfolio is definitely growing, which fuels that primary income stream. As of September 30, 2025, Middlefield Banc Corp. reported total loans stood at approximately $1.6 billion. This growth supports the NII performance we saw earlier in the year.

For the first six months of 2025, the NII was $33.5 million, showing an 11.6% increase from the prior year period. The net interest margin (NIM) for the second quarter of 2025 expanded to 3.88%. That's a solid margin expansion, showing disciplined pricing management.

The secondary revenue source is Non-interest income. For the six months ended June 30, 2025, this totaled $5.0 million. It's important to note that this aggregate figure for Q2 2025 was boosted by a one-time event: a net gain of $1.2 million from the exchange of real estate related to the Westerville, Ohio branch relocation. This means the recurring fee and service income was lower than the total reported non-interest income for the quarter.

Here's a breakdown of the key revenue components based on the latest available reporting periods and structure:

Revenue Stream Component	Latest Reported Amount	Reporting Period/Balance Date
Net Interest Income (NII)	$33.5 million	Six Months Ended June 30, 2025
Total Loans (Basis for NII)	$1.6 billion	September 30, 2025
Total Non-interest Income	$5.0 million	Six Months Ended June 30, 2025
Investment Securities (Balance)	$165.0 million	March 31, 2025

To get a clearer picture of the fee-based revenue, you have to look closer at the components that make up that total non-interest income. While the specific 2025 breakdown isn't publically detailed in the latest reports, we know the categories Middlefield Banc Corp. relies on:

• Net interest income from the loan portfolio.
• Non-interest income from service charges and fees.
• Wealth management and brokerage fees (via LPL Financial).
• Mortgage origination and servicing fees.
• Investment securities income from the balance sheet.

For context on service charges, the first quarter of 2024 saw service charges on deposit accounts at $909,000 for the three-month period. The wealth management and mortgage components are embedded within the aggregate non-interest income, which was $3.1 million in Q2 2025 alone, excluding the real estate gain. The investment securities portfolio balance was $165.0 million as of March 31, 2025, but the specific income generated from holding these assets isn't itemized separately in the high-level summaries. Honestly, for a community bank like Middlefield Banc Corp., NII is the engine, and fees are the necessary turbocharger.