2018 Summary Annual Report
Total Assets
(in thousands)
Net Loans Outstanding
(in thousands)
$
1
,
2
4
8
,
3
9
8
$
1
,
1
0
6
,
3
3
6
$
7
8
7
,
8
2
1
$
7
3
5
,
1
3
9
$
6
7
7
,
5
3
1
$
9
8
4
,
6
8
1
$
9
1
6
,
0
2
3
6
0
2
,
5
4
2
$
5
2
7
,
3
2
5
$
4
6
3
,
7
3
8
’14
’15
’16
’17
’18
’14
’15
’16
’17
’18
Basic Earnings Per Share:
$3.85
+23.4% in 2018
(Represents percentage increase over 2017
Basic Earnings Per Share at $3.12)
Net Income
(in thousands)
$
7
,
1
8
0
$
6
,
8
6
5
$
6
,
4
1
6
$
1
2
,
4
3
1
$
9
,
4
5
5
Book Value Per Share
$
3
9
.
5
4
$
3
7
.
2
5
$
3
4
.
1
4
$
3
3
.
1
9
$
3
1
.
1
2
’14
’15
’16
’17
’18
’14
’15
’16
’17
’18
Total Assets
(in thousands)
Net Loans Outstanding
(in thousands)
CHAIRMAN’S LETTER TO SHAREHOLDERS:
$
1
,
2
4
8
,
3
9
8
$
1
,
1
0
6
,
3
3
6
$
7
8
7
,
8
2
1
$
7
3
5
,
1
3
9
$
6
7
7
,
5
3
1
$
9
8
4
,
6
8
1
$
9
1
6
,
0
2
3
6
0
2
,
5
4
2
$
5
2
7
,
3
2
5
$
4
6
3
,
7
3
8
’14
’15
’16
’17
’18
’14
’15
’16
’17
’18
Basic Earnings Per Share:
$3.85
+23.4% in 2018
Net Income
(in thousands)
$
7
,
1
8
0
$
6
,
8
6
5
$
6
,
4
1
6
$
1
2
,
4
3
1
$
9
,
4
5
5
Book Value Per Share
$
3
9
.
5
4
$
3
7
.
2
5
$
3
4
.
1
4
$
3
3
.
1
9
$
3
1
.
1
2
’14
’15
’16
’17
’18
’14
’15
’16
’17
’18
For 2018, Middlefield Banc
Corp. continued to make
progress executing its growth-
oriented strategic plan and
enhancing the Company’s
brand throughout Northeast
and Central Ohio.
We achieved record financial results including record net
income of $12.4 million, or $3.83 per diluted share and
record book value of $39.54 per share. We also ended
the year with record assets as a result of favorable loan
growth, while maintaining strong asset quality.
As a community focused bank, I am pleased with the
Board’s decision to share the benefits of the Tax Cuts
and Jobs Act with both our employees and shareholders.
Early in 2018, Middlefield’s Board approved a one-time
$1,000 bonus to all employees and a $0.05 per share
special one-time cash dividend to our shareholders.
The Board also approved a 3.7% increase in our regular
quarterly cash dividend.
Throughout the year, we provided over $50,000
in donations to organizations within our markets.
Middlefield also increased its employee count by 7%.
We expanded our footprint in Central Ohio and opened
a new office in Powell.
For the sixth consecutive year, Middlefield made
American Banker’s list of the Top 200 publicly traded
community banks. This annual list examined 663
publicly traded banks and thrifts with assets under $2
billion and selected the top 200 based on their three-year
return on average equity (ROAE). I am also pleased to
report that Middlefield was the only Ohio institution to
be included in S&P Global Market Intelligence’s annual
list ranking community banks with assets between
$1 billion and $10 billion on several key financial
characteristics including before tax ROATCE, NCOs/
average loans, efficiency ratio, adjusted Texas ratio,
net interest margin, and loan growth.
While our 2018 results and accolades are impressive,
we continue to monitor and respond to the world around
us. This includes investing in modern technologies that
not only enhance the way our customers engage with
the Bank but also protects customers and their accounts
from online, digital and cyber threats.
After a period of historically low interest rates,
Middlefield and our customers have had to adjust to a
rising rate environment. We also experienced increased
competition for deposits. I am encouraged by 2018’s
improvement in deposits and how the Company managed
its cost of funds.
As Middlefield’s size and scale increases, it is important
to maintain an appropriate level of risk. The continued
decline in nonperforming loans and nonperforming assets
reflects Middlefield’s commitment to controlling risk.
Over the years I have ended many of my annual report
letters with: ‘Surround yourself with great people and
you can do great things.’ In our modern, technologically
focused world, we believe assembling a platform of
experienced, knowledgeable, and ethical leaders is ever
more important. We continue to enhance our leadership
team and during the year added talented bankers
throughout our organization. I am proud of the platform
we have created, and I am confident we have the
right people, infrastructure, and strategic plan in place
to achieve many great things.
On behalf of the Middlefield Banc Corp. Board of
Directors and our employees, we thank
you for your continued support.
Carolyn J. Turk, C.P.A.
Chairman, Board of Directors
Middlefield Banc Corp. 2018 Summary Annual Report 1
DECADE OF PROGRESS
(Dollar amounts in thousands, except per share data)
2009
2010
2011
Interest Income
Interest Expense
Net Interest Income
Provision for Loan Loss
Net Interest Income After Provision for Loan Losses
Noninterest Income, Including Security Gains/Losses
Noninterest Expense
Income Before Income Taxes
Income Taxes
Net Income
Total Assets
Deposits
Equity Capital
Loans Outstanding, Net
Allowance for Loan Losses
Net Charge-offs
Full Time Employees (Average Equivalents)
Number of Offices
Earnings Per Share
Dividends Per Share
Book Value Per Share
Dividend Payout Ratio
Cash Dividends Paid
Return on Average Assets
Return on Average Equity
$ 26,051
$ 29,094
$ 29,727
11,783
14,268
2,578
11,690
2,668
12,650
1,708
10,945
18,149
3,580
14,569
2,623
14,763
2,429
(73)
(88)
8,652
21,075
3,085
17,990
2,237
15,501
4,726
596
$ 1,781
$ 2,517
$ 4,130
$558,658
$632,197
$654,551
487,106
36,707
348,660
4,937
1,198
106
10
565,251
38,022
366,277
6,221
2,296
108
10
580,962
47,253
395,061
6,819
2,487
113
10
$ 1.15
1.04
$ 1.60
1.04
$ 2.45
1.04
23.46
90.28%
23.90
65.04%
26.81
42.71%
$ 1,608
$ 1,637
$ 1,764
0.36%
4.90%
0.41%
6.44%
0.65%
10.24%
2 Middlefield Banc Corp. 2018 Summary Annual Report
2012
2013
2014
2015
2016
2017
2018
$ 28,746
$ 28,178
$ 27,874
$ 28,595
$ 29,994
$ 43,995
$ 50,357
6,447
22,299
2,168
20,131
3,451
15,639
7,943
1,662
5,250
22,928
196
22,732
3,145
16,870
9,007
1,979
4,070
23,804
370
23,434
3,588
17,850
9,172
1,992
3,820
24,775
315
24,460
4,044
20,077
8,427
1,562
4,190
25,804
570
25,234
3,959
20,872
8,321
1,905
6,647
37,348
1,045
36,303
4,859
27,485
13,677
4,222
9,909
40,448
840
39,608
3,728
28,743
14,593
2,162
$ 6,281
$ 7,028
$ 7,180
$ 6,865
$ 6,416
$ 9,455
$ 12,431
$670,288
$647,090
$677,531
$735,139
$787,821
$1,106,336
$1,248,398
593,335
55,437
400,654
7,779
1,208
120
10
568,836
53,473
428,679
7,046
929
125
10
$ 3.29
1.04
$ 3.48
1.04
27.83
31.87%
26.31
29.84%
586,112
63,867
463,738
6,846
570
139
10
$ 3.52
1.04
31.12
624,447
62,304
527,325
6,385
776
143
10
$ 3.41
1.07
33.19
29.54% 30.90%
629,934
76,960
602,542
6,598
357
139
11
878,194
1,016,067
119,863
916,023
7,190
453
190
14
128,290
984,681
7,428
602
200
15
$ 3.04
1.08
$ 3.12
1.08
$ 3.85
1.17
34.14
36.13%
37.25
35.52%
39.54
30.40%
$ 2,002
$ 2,048
$ 2,121
$ 2,153
$ 2,318
$ 3,358
$ 3,779
0.95%
11.98%
1.06%
13.17%
1.07%
12.17%
0.97%
10.62%
0.85%
9.33%
0.88%
8.52%
1.09%
9.94%
Middlefield Banc Corp. 2018 Summary Annual Report 3
TO OUR SHAREHOLDERS AND FRIENDS:
Middlefield achieved multiple
financial and operating records
during 2018 including record
assets, deposits, net income,
and book value per share.
These accomplishments are a
direct result of the continued
performance of our strategic
plan, our commitment to
community banking values,
positive economic and
demographic trends within
our markets, and the daily
contribution of our 187
associates.
As we have discussed in the past, our values are defined
by our desire to profitably serve our communities
through the Company’s dedication to quality, safety
and soundness, while maximizing value for our
shareholders. We remain committed to these core
values and they are the foundation of our future success.
For 2018, total assets increased 12.8% to a record
$1.25 billion, compared to $1.11 billion last year. This
growth was primarily due to a 7.5% improvement in
4 Middlefield Banc Corp. 2018 Summary Annual Report
the Company’s loan portfolio, as a result of growth in real
estate construction loans, commercial mortgage loans,
and residential mortgage loans. The Company’s growing
asset base helped Middlefield increase total interest income
for 2018 by 14.5% to a record $50.4 million.
Asset quality continues to improve, driven by our
prudent lending practices and stable local economies.
At December 31, 2018, nonperforming loans declined
21.2%. This drove a 38-basis point reduction in
nonperforming loans to total loans, which ended the year
at 1.07% and is at the lowest level in over six years. In
addition, nonperforming assets to total assets declined
36-basis points to 0.87% at December 31, 2018.
Middlefield will not pursue aggressive growth or near-
term profits by increasing the potential for long-term
risk. As a result, profitability was impacted throughout
2018 by our decision to end our student loan program
during the 2018 first quarter due to our former
partner changing the structure of the program, which
we believe increased our risk. This was the primary
reason behind the $1.1 million or 23.3% reduction in
noninterest income during 2018. We are focused on
improving the level of noninterest income in a safe,
sound and efficient manner during 2019 and beyond.
Throughout 2018 we focused on driving deposit growth
and during the year deposits increased 15.7% to $1.02
billion. Our success growing deposits helped reduce
our loan-to-deposit ratio 750 basis points to 97.6%
at December 31, 2018. Throughout 2018, the U.S.
Federal Reserve increased rates four times which caused
Middlefield’s cost of funds to rise 27 basis points. We
successfully offset the majority of this increase and
our net interest margin declined only 5 basis points to
3.77% at December 31, 2018.
Despite the impacts from lower noninterest income
and higher cost of funds, Middlefield achieved record
net income as a result of record net interest income,
strong asset quality, successful expense management,
and the benefit of the Tax Cuts and Jobs Act. For 2018,
net income increased 31.5% to a record $12.4 million,
or $3.83 per diluted share. Our tangible book value(1)
per share increased 7.7% to a record $34.16 per
share. In addition, I am encouraged by the continued
expansion of returns on average assets, equity, and
tangible common equity we have been achieving. For
the 2018 fourth quarter compared to the same period
last year, our return on average equity increased
280 basis points to 10.52%, our return on average
tangible common equity(1) increased 312 basis points
to 12.17%, and our return on average assets increased
29 basis points to 1.15%.
I am extremely optimistic about the direction we
are headed and the opportunities we have in both
of our compelling Ohio markets. This starts with
our leadership team and over the past several years,
Middlefield has attracted experienced and talented
bankers that want to be part of a growing and successful
community bank. I remain encouraged with the
talented team we have assembled and our ability to
attract proven leaders.
Our consistent and stable growth across our Northeast
Ohio and Central Ohio markets demonstrates that our
community-oriented culture and talented associates are
expanding our market share. In September 2018, we
announced the opening of our 15th location in Powell,
Ohio. Over the past two years we have added two new
locations in Central Ohio, which has contributed to a
27% increase in deposits and 49% growth in loans in
this region. Middlefield’s opportunity in Central Ohio
is supported by the region’s compelling economic and
demographic trends. In addition, at June 30, 2018, five
of the 33 banks in Franklin and Delaware Counties
controlled over 86% of total deposits, which createsa
significant opportunity for Middlefield to attract
customers looking for the community-oriented financial
products and services we provide.
1) This letter 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.
With 11 locations and strong market share in our
core Northeast Ohio markets, we have exciting
opportunities to expand our presence in Cuyahoga
and Summit counties. Similar to our approach in
Central Ohio, Cuyahoga and Summit counties are
dominated by large national and regional banks. We
believe our differentiated financial offerings based
on a high level of personal service, quick decision
process, and local presence provides an attractive
alternative to big banking culture. As both of our Ohio
markets benefit from a strong economic base, low
unemployment, and compelling growth characteristics,
we are optimistic in the long-term opportunities to
increase our market share.
Looking ahead, as our new Powell and Sunbury
locations mature, and we focus on controlled growth,
operating leverage and improved profitability, we
believe we can continue to generate an annual
efficiency ratio in the low 60% range during 2019.
We are optimistic 2019 will be another year of solid
performance for your company and we are excited by
the opportunities Middlefield has to create value for our
shareholders, employees, customers, and communities.
On behalf of everyone at the Middlefield Banc Corp.,
I appreciate your continued support. We look forward
to reporting on our progress throughout 2019 and we
sincerely appreciate the dedication of our associates,
the loyalty of our customers and the commitment and
interest of our shareholders. Thank you.
Sincerely,
Thomas G. Caldwell
Thomas G. Caldwell
President and
Chief Executive Officer
Middlefield Banc Corp. 2018 Summary Annual Report 5
CONSOLIDATED BALANCE SHEET
(Dollar amounts in thousands, except shares)
ASSETS
Cash and cash equivalents
Equity securities, at fair value
Investment securities available for sale, at fair value
Loans held for sale
Loans
Less allowance for loan and lease losses
Net loans
Premises and equipment, net
Goodwill
Core deposit intangibles
Bank-owned life insurance
Accrued interest receivable and other assets
TOTAL ASSETS
LIABILITIES
Deposits:
Noninterest-bearing demand
Interest-bearing demand
Money market
Savings
Time
Total deposits
Short-term borrowings:
Federal funds purchased and repurchase agreements
Federal Home Loan Bank advances
Total short-term borrowings
Other borrowings
Accrued interest payable and other liabilities
TOTAL LIABILITIES
STOCKHOLDERS’ EQUITY
Common stock, no par value; 10,000,000 shares authorized,
3,630,497 and 3,603,881 shares issued; 3,244,332 and
3,217,716 shares outstanding
Retained earnings
Accumulated other comprehensive (loss) income
Treasury stock, at cost; 386,165 shares
TOTAL STOCKHOLDERS’ EQUITY
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
See accompanying notes to the consolidated financial statements.
6 Middlefield Banc Corp. 2018 Summary Annual Report
2018
2017
$ 107,933
616
98,322
597
992,109
7,428
984,681
13,003
15,071
2,397
16,080
9,698
$1,248,398
$ 178,386
117,128
196,685
222,954
300,914
1,016,067
398
90,000
90,398
8,803
4,840
1,120,108
85,925
56,037
(154)
(13,518)
128,290
$1,248,398
$ 39,886
—
95,283
463
923,213
7,190
916,023
11,853
15,071
2,749
15,652
9,356
1,106,336
$ 164,424
112,004
150,277
208,502
242,987
878,194
4,707
70,000
74,707
29,065
4,507
986,473
84,859
47,431
1,091
(13,518)
119,863
$1,106,336
CONSOLIDATED STATEMENT OF INCOME
(Dollar amounts in thousands, except per share data)
INTEREST AND DIVIDEND INCOME
Interest and fees on loans
Interest-earning deposits in other institutions
Federal funds sold
Investment securities:
Taxable interest
Tax-exempt interest
Dividends on stock
Total interest and dividend income
INTEREST EXPENSE
Deposits
Short-term borrowings
Other borrowings
Total interest expense
NET INTEREST INCOME
Provision for loan losses
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
NONINTEREST INCOME
Service charges on deposit accounts
Investment securities gains on sale, net
Loss on equity securities
Earnings on bank-owned life insurance
Gain on sale of loans
Other income
Total noninterest income
NONINTEREST EXPENSE
Salaries and employee benefits
Occupancy expense
Equipment expense
Data processing costs
Ohio state franchise tax
Federal deposit insurance expense
Professional fees
Advertising expense
Software amortization expense
Core deposit intangible amortization
Merger expense
Other expense
Total noninterest expense
Income before income taxes
Income taxes
NET INCOME
EARNINGS PER SHARE
Basic
Diluted
DIVIDENDS DECLARED PER SHARE
See accompanying notes to the consolidated financial statements.
2018
$46,576
558
46
688
2,262
227
50,357
8,631
842
436
9,909
40,448
840
39,608
1,914
—
(9)
428
231
1,164
3,728
15,749
1,933
969
1,806
823
550
1,482
921
605
352
—
3,553
28,743
14,593
2,162
$12,431
$3.85
3.83
$ 1.17
2017
$40,235
328
15
762
2,406
249
43,995
5,350
753
544
6,647
37,348
1,045
36,303
1,875
886
—
431
826
841
4,859
13,758
1,846
1,050
1,792
744
533
1,752
821
414
374
1,060
3,341
27,485
13,677
4,222
$ 9,455
$ 3.12
3.10
$ 1.08
Middlefield Banc Corp. 2018 Summary Annual Report 7
MIDDLEFIELD BANC CORP. BOARD OF DIRECTORS
Carolyn J. Turk, C.P.A. 2004
Chairman, Board of Directors
Middlefield Banc Corp.
The Middlefield Banking Company
Senior Internal Auditor
Molded Fiber Glass Companies
William J. Skidmore 2007
Northeast Ohio Senior
District Manager
Waste Management
of Ohio, Inc.
Darryl E. Mast 2013
Retired: Hattie Larlham Care Group and
Hattie Larlham Foundation
Thomas G. Caldwell 1997
President and Chief Executive Officer
Middlefield Banc Corp.
The Middlefield Banking Company
Kenneth E. Jones 2008
Retired Financial Executive
Clayton W. Rose, III, C.P.A. 2014
Retired: Executive Principal
Rea & Associates, Inc.
James R. Heslop, II 2001
Executive Vice President
Chief Operating Officer
Middlefield Banc Corp.
The Middlefield Banking Company
Robert W. Toth 2009
Retired: Gold Key Processing, Ltd
Thomas Bevan 2017
Chief Executive Officer
Bevan & Associates, LPA, Inc.
James J. McCaskey 2004
President
McCaskey Landscape and Design, LLC
Eric W. Hummel 2011
President
Hummel Construction
William A. Valerian 2017
Retired: Chairman, President and
Chief Executive Officer
Liberty Bank N.A.
Central Ohio Region Advisory Board: Jeffrey A. Gongwer; George J. Kontogiannis, AIA; Timothy C. Long; Michael J. Moran
8 Middlefield Banc Corp. 2018 Summary Annual Report
COMMUNITY INVOLVEMENT
The Middlefield Banking Company takes great pride in
being a partner, advocate, and leader for the communities
and people we serve.
We are dedicated to strengthening and improving these
communities through partnering with local charities
and volunteering along with providing needed financial
services and education.
The Middlefield Banking Company expanded
charitable partnerships into new geographic and services
areas in 2018.
Our partners are groups and organizations that serve the
local communities where we do business. By supporting
these local groups we can aid them in reaching their
goals and growing services and programs.
Our officers and employees are in leadership roles with
more than 20 organizations ranging from non-profits,
direct services, healthcare, and education.
Below is a list of some of those organizations:
• Ashtabula Community Foundation
• Children’s Advocacy Center (Portage)
• Children’s Hospital (Columbus)
• Crossroads/Beacon Health (Cuyahoga)
• Financial Empowerment (Portage & Trumbull)
• Geauga Community Improvement Corporation
• Geauga County Fair Housing
• Geauga Growth Partnership
• Hattie Larlham Center for Children with
Disabilities
• Junior Achievement (Mahoning, Trumbull,
Ashtabula)
• Next Step (Geauga & Portage)
• Safer Futures (Portage)
• United Way (Delaware, Geauga, Lake, Trumbull)
In 2018, we also implemented our first Youth Philanthropy
program offered to Warren G. Harding High School
in Trumbull County. The premise of the program is
to provide upper class high school students with an
opportunity to form a mock community foundation
board. The students will participate in the planning,
budgeting, evaluations, and ultimately the funding
decisions to award money to local nonprofits. There is also
a scholarship opportunity attached to the program.
Middlefield Banc Corp. 2018 Summary Annual Report 9
Middlefield Banc Corp. 2018 Summary Annual Report 9
Thomas G. Caldwell 1986
President and Chief Executive Officer
James R. Heslop, II 1996
Executive Vice President
Chief Operating Officer
Donald L. Stacy 1999
Executive Vice President
Chief Financial Officer
Charles O. Moore 2016
President, Central Ohio Region
Teresa M. Hetrick 1996
Executive Vice President
Deposit Services
Eric P. Hollinger 2013
Executive Vice President
Senior Lender
Michael L. Allen 2018
Executive Vice President
Chief Banking Officer
John D. Lane 2018
Executive Vice President
Chief Credit & Risk Officer
Jay W. Valerian 2004
Senior Vice President
Residential Lending
10 Middlefield Banc Corp. 2018 Summary Annual Report
Matthew E. Bellin 2006
Senior Vice President
Commercial Lending Team Leader
Adam T. Cook 2006
Senior Vice President
Loan Administration
Felicia M. Hough 2009
Senior Vice President
Branch Administration
Courtney M. Erminio 2010
Senior Vice President
Risk Officer
Craig E. Reay 2011
Senior Vice President
Credit Administration
Robert J. Dawson 2015
Senior Vice President
Commercial Lending Team Leader
Carole L. Shaull 2015
Senior Vice President
Human Resources
J Todd Price 2016
Senior Vice President
Commercial Lending Team Leader
Shalini Singhal 2016
Senior Vice President
Chief Information Officer
Michael C. Ranttila 2017
Senior Vice President
Finance
Thomas R. Neikirk 1994
Vice President
Commercial Lending Team Leader
Alfred F. Thompson, Jr. 1996
Vice President
Credit Administration
David Kucera 2004
Vice President
Controller
Laura E. Neale 2010
Vice President
Commercial Lender
Richard R. Parkin 2011
Vice President
Commercial Lender
Lori A. Graham 2013
Vice President
Compliance/CRA Officer
Daniel B. Plant 2014
Vice President
Mortgage Lending
THE MIDDLEFIELD BANKING COMPANY OFFICERS
John Solich 2015
Vice President
Commercial Lender
Robert Naegele 2017
Vice President
Commercial Lender
Ashley Rispinto 2017
Vice President
Commercial Lender
Stanley Gregorin, Jr. 2018
Vice President
Commercial Lender
Karen D. Branham 1983
Assistant Vice President
Deposit Operations Manager
Kathleen M. Vanek 1998
Assistant Vice President
Mantua Branch Manager
Marlin J. Moschell 2000
Assistant Vice President
Orwell Lending Officer
Kevin J. Mitchell 2007
Assistant Vice President
Lender II
Jean M. Carter 2009
Assistant Vice President
Chardon Branch Manager
Dale L. Moore 2009
Assistant Vice President
Project Coordinator
James C. Foster 2011
Assistant Vice President
Orwell Branch Manager
Stephen J. Lebold 2012
Assistant Vice President
Westerville Branch Manager
Lisabeth A. Muldowney 2012
Assistant Vice President
Garrettsville Branch Manager
Kristie Bond 2014
Assistant Vice President
BSA/Security Officer
Linda M. Zak 2014
Assistant Vice President
Mortgage Loan Operations
Rachel Gordon 2015
Assistant Vice President
Financial Reporting Manager
Tyler Henkle 2015
Assistant Vice President
Commercial Lender
Warren R. Cox, II 2016
Assistant Vice President
Sunbury Branch Manager
Thomas W. Parker 2016
Assistant Vice President
Commercial Lender
Lisa A. Sanborn 2000
Banking Officer
E Banking Support Manager
Brett A. Richey 2010
Banking Officer
Special Assets Manager
Michelle L. Bahleda 2014
Banking Officer
Lender
Christopher N. Pratt 2014
Banking Officer
Support Center Manager
Middlefield Banc Corp. 2018 Summary Annual Report 11
MENTOR
LAKE
CHARDON
ASHTABULA
ORWELL
BEACHWOOD
NEWBURY
SOLON
TWINSBURG
GEAUGA
MIDDLEFIELD
CORTLAND
MANTUA
GARRETTSVILLE
TRUMBULL
PORTAGE
THE MIDDLEFIELD BANKING COMPANY
LOCATIONS
CLEVELAND
Administrative Offices
15200 Madison Road
P.O. Box 35
Middlefield, Ohio 44062
888.801.1666
Beachwood
25201 Chagrin Boulevard
Suite 120
Beachwood, Ohio 44122
216.359.5580
Chardon
348 Center Street
P.O. Box 1078
Chardon, Ohio 44024
440.286.1222
Cortland
3450 Niles-Cortland Road
Cortland, Ohio 44410
330.637.3208
Dublin
6215 Perimeter Drive
Dublin, Ohio 43017
614.793.4631
12 Middlefield Banc Corp. 2018 Summary Annual Report
12 Middlefield Banc Corp. 2018 Summary Annual Report
DELAWARE
POWELL
SUNBURY
WESTERVILLE
DUBLIN
FRANKLIN
COLUMBUS
DELA AREWAREW
DELAW
DELAW
FRANKLIN
COLUMBUS
Garrettsville
8058 State Street
Garrettsville, Ohio 44231
330.527.2121
Lake County Loan
Production Office
8373 Mentor Avenue
Mentor, Ohio 44060
440.632.8140
CLEVELAND
ASHT
ASHT
ASHTABULA
ASHTABULA
MENTOR
PORT E
PORTAG
PORTAG
LAKE
TRUMBULL
CHARDON
ASHTABULA
ORWELL
BEACHWOOD
NEWBURY
SOLON
MIDDLEFIELD
TWINSBURG
GEAUGA
CORTLAND
MANTUA
GARRETTSVILLE
TRUMBULL
PORTAGE
Mantua
10519 Main Street
P.O. Box 648
Mantua, Ohio 44255
330.274.0881
Middlefield Main
15985 East High Street
P.O. Box 35
Middlefield, Ohio 44062
440.632.8115
Middlefield West
15545 West High Street
P.O. Box 35
Middlefield, Ohio 44062
440.632.8113
DELAWARE
SUNBURY
POWELL
WESTERVILLE
DUBLIN
FRANKLIN
COLUMBUS
Newbury
11110 Kinsman Road
Suite 1
P.O. Box 208
Newbury, Ohio 44065
440.564.7000
Orwell
30 South Maple Street
P.O. Box 66
Orwell, Ohio 44076
440.437.7200
Powell
10628 Sawmill Parkway
Powell, Ohio, 43065
614.392.5702
Solon
6134 Kruse Drive
Solon, Ohio 44139
440.542.3789
Sunbury
492 West Cherry Street
Sunbury, Ohio 43074
740.913.0632
Twinsburg
2351 Edison Boulevard
P.O. Box 560
Twinsburg, Ohio 44087
330.425.3033
Westerville
17 North State Street
Westerville, Ohio 43081
614.890.7832
Middlefield Banc Corp. 2018 Summary Annual Report 13
Middlefield Banc Corp. 2018 Summary Annual Report 13
118 YEARS AND GROWING
Our core values have endured for 118 years and have enabled the Bank to grow and
help the communities we serve.
1900-1919
1920-1939
1940-1969
1970-1989
1920
Joe E. Johnson,
President.
1929
The national stock
market crashes
and the Great
Depression begins.
1933
The Bank closes its
doors temporarily, as
directed by President
Franklin Roosevelt
who declares a
National “Bank
Holiday” to stabilize
the banking system.
1901
The Middlefield
Banking Company
opened its doors
on September 16th
with an authorized
working capital
of $25,000.
Alfonso W.
Belden, President.
Certificates of
Deposit feature
4% interest rate.
Deposits are $14,208.
1902
J.J. Rose, President.
Deposits are at
$91,659.
1914
The First World War
Begins.
1941
Attack on U.S. Naval
Base at Pearl Harbor.
United States enters
the Second World
War.
1943
Total assets break the
million mark
at $1,320,821.
1950
Total assets of
$3.0 million
1963
Dale McClurg is
President.
First of several
expansions begins.
1981
Robert E. Stewart
is President.
1985
West Branch of
Middlefield Bank
opens. Total assets
are $50 million.
1986
Joseph P. Robb
is President.
Garrettsville
Branch of
Middlefield Bank
is opened.
1988
Formation of
Middlefield Banc
Corp.
14 Middlefield Banc Corp. 2018 Summary Annual Report
1990-1999
2000-2005
2006-2015
2016-present
2000
The Bank introduces
EasyLine for
telephone banking.
2001
Middlefield Banc
Corp. becomes
an SEC reporting
company. Chardon
Branch opens.
Bank introduces
EasyLink,
its online
banking system.
2003
Orwell Branch
opens.
1993
Construction of
Middlefield Village
Center and new
flagship branch.
Bank assets total
$100 million.
1994
First offering of MAC
ATM cards.
1995
Thomas G. Caldwell
is President.
1998
Mantua Branch
Opens. Data Systems
Conversion. $150
million in assets.
1999
Garrettsville Branch
relocated to a newly
constructed facility.
2016
Middlefield Bank
opens a branch in
Sunbury, Ohio,
the third branch in
central Ohio.
2017
Middlefield Banc
Corp. purchases
Liberty Bank N.A.
and its offices in
Beachwood, Solon,
and Twinsburg.
2018
The Powell Branch
opens in a newly
constructed building
in central Ohio.
2006
Newbury Branch
opens
2007
Middlefield Banc
Corp. acquires
Emerald Bank and its
Dublin, Ohio branch
in central Ohio.
2008
Emerald Bank opens
a second office
in Westerville, Ohio.
Cortland Branch
opens.
2014
Emerald Bank is
consolidated by
The Middlefield
Banking Company.
Middlefield Bank
now operates in two
distinct
Ohio markets.
Middlefield Banc Corp. 2018 Summary Annual Report 15
OUR CORE VALUES
CUSTOMER SERVICE:
We will treat all customers in a manner
that is both personal and caring. We will show
genuine concern and respect for
them as individuals.
HONESTY AND INTEGRITY:
It is imperative that our customers trust
us to do business in an ethical manner.
We will always honor our commitments,
keep our promises, and do the right thing.
EFFICIENCY:
In order to be successful and to remain
competitive, we must keep our costs
at a reasonable level, strive to improve
productivity, and continue to become more
efficient in the way we conduct our business.
TEAM FOCUS:
Believing that our people are key to our
success, we are dedicated to a well-educated
and highly skilled workforce. We are one
team sharing one focus.
16 Middlefield Banc Corp. 2018 Summary Annual Report
COMMUNITY COMMITMENT:
Actively participating and investing in our communities
is at the foundation of our organization. It is important
to provide leadership within our communities and to
offer our time, talent, and dollars.
PROACTIVE APPROACH:
In order to be responsive to our customers’ needs,
we approach banking in a proactive, flexible, and
positive manner. We strive to be creative in solutions
to problems, recognizing them as improvement
opportunities.
SHAREHOLDER COMMITMENT:
Our shareholders have expressed their belief in us
and it is our duty to be responsible stewards of
their investments. Prudent and fiscally responsible
management will provide both short-term and
long-term value to our shareholders.
SHAREHOLDER INFORMATION
CORPORATE HEADQUARTERS
Middlefield Banc Corp.
15985 East High Street
P.O. Box 35
Middlefield, Ohio 44062
888.801.1666 • 440.632.1666
fax: 440.632.1700
FORM 10-K AND 10-Q AVAILABILITY
A copy of Middlefield Banc Corp.’s Annual Report on
Form 10-K and Quarterly Reports on 10-Q filed with the
Securities and Exchange Commission will be furnished to any
shareholder, free of charge, upon written or e-mail request to:
Donald L. Stacy
Senior Vice President,
Treasurer and CFO
Middlefield Banc Corp.
P.O. Box 35
Middlefield, Ohio 44062
or dstacy@middlefieldbank.com
MARKET MAKERS
The symbol for Middlefield Banc Corp. common stock is
MBCN and the CUSIP is 596304204.
Sweney Cartwright & Co.
800.334.7481
www.swencart.com
Boenning & Scattergood, Inc.
866.326.8113
www.boenninginc.com
Keefe, Bruyette & Woods
800.342.5529
www.kbw.com
NOTICE OF ANNUAL MEETING
The Annual Meeting of Shareholders of Middlefield Banc Corp.
will be held at 1:00 p.m. on Wednesday, May 15, 2019, at:
Sun Valley Banquet and Party Center
10000 Edwards Lane
Aurora, Ohio 44202
TRANSFER AGENT AND REGISTRAR
American Stock Transfer & Trust Company
59 Maiden Lane
Plaza Level
New York, New York 10038
800.937.5449
INDEPENDENT AUDITORS
S.R. Snodgrass, P.C.
2009 Mackenzie Way, Suite 340
Cranberry Township, Pennsylvania 16066
724.934.0344
INTERNET INFORMATION
Information on the Company and its subsidiary bank is
available on the Internet at www.middlefieldbank.bank.
DIVIDEND PAYMENT DATES
Subject to action by the Board of Directors, Middlefield
Banc Corp. will pay dividends in March, June, September,
and December.
DIVIDEND REINVESTMENT AND
STOCK PURCHASE PLAN
Shareholders may elect to reinvest their dividends in additional
shares of Middlefield Banc Corp.’s common stock through the
Company’s Dividend Reinvestment Plan. To arrange automatic
purchase of shares with quarterly dividend proceeds, please call
888.801.1666.
DIRECT DEPOSIT OF DIVIDENDS
The direct deposit program, which is offered at no charge,
provides for automatic deposit of quarterly dividends directly
to a checking or savings account with The Middlefield Banking
Company. For information regarding this program, please call
888.801.1666.
MARKET FOR COMMON EQUITY AND
RELATED STOCKHOLDER MATTERS
Middlefield Banc Corp. had approximately 1,035 shareholders
of record as of February 11, 2019. Our common stock trades on
the NASDAQ Capital Market under the ticker symbol MBCN.
The following table shows the high and low bid prices of and
cash dividends paid on the Company’s common stock during the
periods indicated. The high and low bid prices are compiled from
data available through NASDAQ. This information does not
reflect retail mark-up, markdowns or commissions, and does
not necessarily represent actual transactions.
High
Bid
Low
Bid
Cash
Dividends
per share
$51.25
$54.90
$52.35
$48.45
$46.00
$54.60
$50.75
$50.50
$46.25
$48.00
$46.10
$38.50
$38.40
$43.60
$42.10
$42.95
$ 0.33
$ 0.28
$ 0.28
$ 0.28
$ 0.27
$ 0.27
$ 0.27
$ 0.27
2018
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
2017
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
Middlefield Banc Corp.
15985 East High Street, Middlefield, Ohio 44062
888.801.1666 • www.middlefieldbank.bank