More annual reports from Middlefield Banc Corp.:
2023 Report2019 Summary Annual Report 1500000 1200000 900000 600000 300000 0 15000 12000 9000 6000 3000 0 Total Assets (in thousands) Net Loans Outstanding (in thousands) $ 9 8 4 , 6 8 1 $ 9 7 7 , 4 9 0 $ 9 1 6 , 0 2 3 $ 6 0 2 , 5 4 2 $ 5 2 7 , 3 2 5 ’15 ’16 ’17 ’18 ’19 Book Value Per Share $ 2 1 4 5 . $ 1 9 7 7 . $ 1 8 6 3 . $ 1 6 5 9 . $ 1 7 0 7 . Tangible Book Value Per Share +10.0% increase over 2018 $ 1 , 2 4 8 , 3 9 8 $ 1 , 1 8 2 , 4 7 5 $ 1 , 1 0 6 , 3 3 6 $ 7 8 7 , 8 2 1 $ 7 3 5 , 1 3 9 ’15 ’16 ’17 ’18 ’19 Net Income (in thousands) $ 9 , 4 5 5 $ 6 , 8 6 5 $ 6 , 4 1 6 $ 1 2 , 7 1 1 $ 1 2 , 4 3 1 ’15 ’16 ’17 ’18 ’19 ’15 ’16 ’17 ’18 ’19 1000000 800000 600000 400000 200000 0 25 20 15 10 5 0 CHAIRMAN’S LETTER TO SHAREHOLDERS: The record financial results we achieved in 2019 are a direct result of the strategies we created and actions we started to pursue several years ago. As I reflect on my first year as Chairman of Middlefield Banc Corp., I am proud not only of our financial success but also the structure the Board of Directors developed during the year to ensure Middlefield Banc Corp. is well positioned to continue creating value for our shareholders, customers, employees, and communities. During 2019, Middlefield Banc Corp. enhanced its operating platform, added important members to the leadership team, and formalized several significant initiatives. This includes the development and approval of a new three-year strategic plan that should serve as the basis of our future success. An important component of any strategic plan is regular and systematic reviews to evaluate the effectiveness of the strategic plan. The Board will continue to provide careful oversight of the strategic plan to ensure that management achieves the Company’s objectives. Middlefield’s long-term stock performance demonstrates a history of outperformance in creating value for shareholders. Middlefield’s stock price performance has consistently outpaced bank industry indices over the last decade. Measured from December 31, 2009 to December 31, 2019, Middlefield’s ten-year total shareholder return with reinvestment of dividends at 279% exceeds the Russell 2000 at 206% and the Nasdaq Bank Index at 198%. From 2014 to 2019, Middlefield’s total shareholder return, including reinvestment of dividends, outperformed both the Nasdaq Bank Index and the Russell 2000. The Board is committed to creating value for shareholders. During 2019, we approved a 300,000 share repurchase program, a two-for-one stock split, and a 7.1% increase in Middlefield’s quarterly cash dividend. As a community bank, we also pride ourselves on the support we provide our local communities. During 2019, we donated over $50,000 to organizations within our markets. The success we continue to achieve is made possible because of the talent, dedication and commitment of Middlefield’s nearly 200 employees. Our employees and many of their family members live in our local markets and bank at Middlefield locations. We continue to be humbled by their support and strive to provide our associates with the resources and opportunities to advance their careers. Middlefield Banc Corp. is well positioned to continue creating value for our shareholders, customers, employees, and communities. I’d like to end my letter with a special thanks to Carolyn J. Turk who served as my predecessor as Chairman of Middlefield’s Board of Directors for nearly six years. As Chairman, Carolyn has provided the necessary leadership and experience to help guide Middlefield’s success. I am thankful for Carolyn’s years of service to Middlefield and glad she continues to serve shareholders as a director of The Middlefield Banking Company and Middlefield Banc Corp. On behalf of the Middlefield Banc Corp. Board of Directors and our employees, we thank you for your continued support. William J. Skidmore Chairman, Board of Directors Middlefield Banc Corp. 2019 Summary Annual Report 1 TO OUR SHAREHOLDERS AND FRIENDS: For 119 years, our customers have trusted Middlefield with their financial assets, which has allowed us to produce consistent financial and operating results. This trust is based on treating customers as individuals, helping customers achieve their financial goals, and providing customers with a safe place to protect their assets. It sounds simple and straightforward, but too often the challenges of the past are quickly forgotten. Middlefield’s history demonstrates that we have successfully navigated various economic periods and we are committed to continue creating long-term value. I am encouraged by the progress we made during 2019 as we achieved record financial results, updated our three-year strategic plan, added management and Board talent, invested in our operations, and approved several corporate actions to further enhance shareholder value. For the year ended December 31, 2019, Middlefield achieved record net income of $12.7 million, record earnings per share of $1.95 per diluted share, and record book value of $21.45 per share. We achieved these impressive financial results despite a more challenging banking environment, as annual noninterest income increased 29.9%, core asset quality improved, and noninterest expenses only increased 4.5%, compared to the prior year. Middlefield’s history demonstrates that we have successfully navigated various economic periods and we are committed to continue creating long-term value. Competition for both loans and deposits within many of our markets was high in 2019 and we saw aggressive pricing dynamics from some of our competitors. As a result, for 2019 total loans declined slightly as we remained disciplined in our pricing and underwriting standards and exited certain loans that did not meet our pricing or risk criteria. We expect a challenging market landscape will remain in 2020 due to further competitive pressures and a low interest rate environment. Despite these near-term pressures, we remain focused on growth by leveraging our Central Ohio expansion, maintaining our leading market share throughout our core Northeast Ohio markets, and increasing sources of noninterest income. During 2019, we launched a completely redesigned and modern website, which reflects the most significant update to our digital presence in nearly two decades. With a new digital platform in place, our marketing strategy has evolved to become more sophisticated and more diversified. Today we are blending digital and traditional marketing activities and connecting with customers in different ways. Throughout the year, we increased customer engagement activities by implementing a responsive website, publishing monthly blog posts, and producing frequent social media and email marketing campaigns. We continue to expand and refine our marketing strategies and plan to roll out new digital platforms and capabilities during 2020, while making it easier for customers to interact and engage with the Bank. Middlefield’s branch expansion continues to focus on adding scale within Central Ohio. In November 2019, we opened our newest location in Plain City, Ohio. With locations in Sunbury, Westerville, Powell, Dublin, and now Plain City, we have significantly expanded the Bank’s presence in the fast-growing northern suburbs of Columbus. Over the past three years, The Middlefield Banking Company has added three new locations and increased the number of associates by 40% in this region. Branch expansion combined with 2 Middlefield Banc Corp. 2019 Summary Annual Report organic growth has contributed to a 63% increase in total deposits and 88% growth in total loans over the last three years within the Central Ohio Region. Middlefield’s market share in our core Northeast Ohio markets remained strong during 2019. In fact, Middlefield remains the number one community bank within our core markets. As we grow our digital marketing strategy and develop new relationship-based products, we believe we can grow our market share in Cuyahoga and Summit counties. Middlefield’s total market share increased for another year. We are now the 27th largest bank in Ohio and one of the largest Ohio-based community banks according to the annual FDIC market share study. For the 2019 full year, noninterest income increased 29.9% to $4.8 million, compared to $3.7 million for the same period last year. Over the past 24 months, we have adjusted our noninterest income strategies to maximize the sources of noninterest income, while limiting the amount of risk to Middlefield. We believe we have the right balance and strategy going forward, and we continue to pursue opportunities to diversify our income streams in 2020 and beyond. Core asset quality remains stable, driven by our prudent lending practices and positive economic trends within our local markets. Nonperforming loans to total loans was 0.88%, compared to 0.76% at December 31, 2018, and well below our five-year average of 1.53%. During the 2019 fourth quarter, charge-offs were higher as a result of charging off $566,000 of acquired student loans during the quarter. We believe this was a one-time issue. As our nonperforming assets at December 31, 2019 2019 was a significant year of investment and transformation. indicate, we expect charge-offs will return to more historical levels during the 2020 first quarter. In addition, our provision for loan losses was $890,000, in line with last year’s provision for loan losses of $840,000, reflecting stable underlying portfolio trends. Controlling net interest margin is also an important area of focus for management as lower benchmark rates impact loan yields and competition for deposits has affected our cost of funds. Despite these pressures, net interest margin only declined nine basis points to 3.68%, primarily due to improving trends in our cost of funds over the last three quarters of 2019. Overall, I am extremely optimistic about the direction we are headed and the opportunities we have in both of our compelling Ohio markets. 2019 was a significant year of investment and transformation. Throughout the year, we focused on initiatives to optimize our business model and develop the right platform to responsibly grow our business in the future. On behalf of everyone at the Middlefield Banc Corp., I appreciate your continued support. We look forward to reporting on our progress throughout 2020 and we sincerely appreciate the dedication of our associates, the loyalty of our customers and the commitment and interest of our shareholders. I am excited with what the future holds for Middlefield. Thank you. Sincerely, Thomas G. Caldwell President and Chief Executive Officer Middlefield Banc Corp. 2019 Summary Annual Report 3 DECADE OF PROGRESS (Dollar amounts in thousands, except earnings per share data) 2010 2011 2012 $ 29,094 $ 29,727 $ 28,746 10,945 18,149 3,580 14,569 2,623 14,763 2,429 (88) 8,652 21,075 3,085 17,990 2,237 15,501 4,726 596 6,447 22,299 2,168 20,131 3,451 15,639 7,943 1,662 $ 2,517 $ 4,130 $ 6,281 $632,197 $654,551 $670,288 565,251 580,962 593,335 38,022 47,253 55,437 366,277 395,061 400,654 6,221 2,296 108 10 6,819 2,487 113 10 7,779 1,208 120 10 $ 0.80 $ 1.23 $ 1.64 0.52 11.95 0.52 13.41 0.52 13.91 65.04% 42.71% 31.87% $ 1,637 $ 1,764 $ 2,002 0.41% 6.44% 0.65% 10.24% 0.95% 11.98% 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 4 Middlefield Banc Corp. 2019 Summary Annual Report 2013 2014 2015 2016 2017 2018 2019 $ 28,178 $ 27,874 $ 28,595 $ 29,994 $ 43,995 $ 50,357 $ 54,525 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 13,140 41,385 890 40,495 4,841 30,033 15,303 2,592 $ 7,028 $ 7,180 $ 6,865 $ 6,416 $ 9,455 $ 12,431 $ 12,711 $647,090 $677,531 $735,139 $787,821 $1,106,336 $1,248,398 $1,182,475 568,836 586,112 624,447 629,934 878,194 1,016,067 1,020,843 53,473 63,867 62,304 76,960 119,863 128,290 137,775 428,679 463,738 527,325 602,542 916,023 984,681 977,490 7,046 6,846 6,385 6,598 7,190 7,428 929 125 10 570 139 10 776 143 10 357 139 11 453 190 14 602 200 15 6,768 1,550 189 16 $ 1.74 $ 1.76 $ 1.71 $ 1.52 $ 1.56 $ 1.92 $ 1.96 0.52 13.16 0.52 15.56 0.54 16.59 0.54 17.07 0.54 18.63 0.59 19.77 0.57 21.45 29.84% 29.54% 30.90% 36.13% 35.52% 30.40% 28.99% $ 2,048 $ 2,121 $ 2,153 $ 2,318 $ 3,358 $ 3,779 $ 3,685 1.06% 13.17% 1.07% 12.17% 0.97% 10.62% 0.85% 9.33% 0.88% 8.52% 1.09% 9.94% 1.05% 9.35% Middlefield Banc Corp. 2019 Summary Annual Report 5 CONSOLIDATED BALANCE SHEET (Dollar amounts in thousands, except shares) 2019 2018 ASSETS Cash and cash equivalents Equity securities, at fair value Investment securities available for sale, at fair value Loans held for sale Loans: Commercial and industrial Real estate —construction Real estate—mortgage: Residential Commercial Consumer installment Total 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 Federal Home Loan Bank advances Total short-term borrowings Other borrowings Accrued interest payable and other liabilities $ 35,113 710 105,733 1,220 $ 107,933 616 98,322 597 89,527 63,246 347,047 470,027 14,411 984,258 6,768 977,490 17,874 15,071 2,056 16,511 10,697 83,857 56,731 336,487 498,247 16,787 992,109 7,428 984,681 13,003 15,071 2,397 16,080 9,698 $1,182,475 $1,248,398 $ 191,370 107,844 160,826 192,003 368,800 1,020,843 75 5,000 5,075 12,750 6,032 $ 203,410 92,104 196,685 222,954 300,914 1,016,067 398 90,000 90,398 8,803 4,840 TOTAL LIABILITIES 1,044,700 1,120,108 STOCKHOLDERS’ EQUITY Common stock, no par value; 10,000,000 shares authorized, 7,294,792 and 7,260,994 shares issued; 6,423,630 and 6,488,664 shares outstanding Retained earnings Accumulated other comprehensive income (loss) Treasury stock, at cost; 871,162 and 772,330 shares TOTAL STOCKHOLDERS’ EQUITY 86,617 65,063 1,842 (15,747) 137,775 85,925 56,037 (154) (13,518) 128,290 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $1,182,475 $1,248,398 See accompanying notes to the consolidated financial statements. 6 Middlefield Banc Corp. 2019 Summary Annual Report CONSOLIDATED STATEMENT OF INCOME (Dollar amounts in thousands, except per share) 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 Gain (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 Other expense Total noninterest expense Income before income taxes Income taxes NET INCOME EARNINGS PER SHARE Basic Diluted See accompanying notes to the consolidated financial statements. 2019 2018 $50,390 673 78 796 2,392 196 54,525 12,409 368 363 13,140 41,385 890 40,495 2,186 194 94 431 433 1,503 4,841 16,523 2,164 1,040 2,208 1,044 230 1,683 733 638 341 3,429 30,033 15,303 2,592 $12,711 $ 1.96 1.95 $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 $ 1.92 1.92 Middlefield Banc Corp. 2019 Summary Annual Report 7 SERVING OUR COMMUNITIES MB at United Way of Geauga County’s Annual Day of Action United Way of Trumbull Co. Read 4 Fun at Lakeview Elementary Scholarship Presentation at W.G. Harding High School Beachwood Branch Presenting Cookies to Beachwood Police Dept. MB Wellness Team at our Health Fair Cortland Branch at the Financial Wellness Fair in Warren Mantua Branch Ice Cream Giveaway at the Chiling Station Meal Packaging Station at United Way of Trumbull Co. Day at Work 8 Middlefield Banc Corp. 2019 Summary Annual Report Giving Tree for WomenSafe in Chardon Giveaway at George’s Donuts for National Donut Day Check Presentation to Twinsburg Historical Society MB Wellness Team at our Health Fair MB’s Team at United Way of Geauga County’s Annual Day of Action Garrettsville’s SummerFest Tractor Parade Meal Packaging Station at United Way of Trumbull Co. Day at Work MB Wellness’s Virtual 5K Contest Sunbury Branch 3rd Anniversary Community Celebration Middlefield Banc Corp. 2019 Summary Annual Report 9 COMMUNITY INVOLVEMENT 2019 The Middlefield Banking Company takes great pride in Below is a list of some of those organizations: 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 2019. 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, including non-profits, direct services, healthcare, and education. • 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 2019, Middlefield Bank partnered with Kent State University’s Geauga and Twinsburg Academic Center to support their Rising Scholars program via board representation and a matching gift of the cost to put one student through the program per year. We firmly believe that investment in education is one of the greatest ways to boost the prosperity of not only yourself but your community. As a long-standing member of the Geauga community, we are proud to support programs that expand access to education. 10 Middlefield Banc Corp. 2019 Summary Annual Report MIDDLEFIELD BANC CORP. BOARD OF DIRECTORS William J. Skidmore 2007 Chairman, Board of Directors Middlefield Banc Corp. The Middlefield Banking Company Retired Ohio Senior District Manager Waste Management of Ohio, Inc. Carolyn J. Turk, C.P.A. 2004 Senior Internal Auditor Molded Fiber Glass Companies 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 Middlefield Banc Corp. 2019 Summary Annual Report 11 MIDDLEFIELD BANC CORP. OFFICERS Thomas G. Caldwell President and Chief Executive Officer James R. Heslop, II Executive Vice President Chief Operating Officer Donald L. Stacy Senior Vice President Chief Financial Officer Julie E. Amsden Corporate Secretary Teresa M. Hetrick Assistant Corporate Secretary 12 Middlefield Banc Corp. 2019 Summary Annual Report THE MIDDLEFIELD BANKING COMPANY OFFICERS 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 Treasurer Charles O. Moore 2016 President, Central Ohio Teresa M. Hetrick 1996 Executive Vice President Deposit Services Michael L. Allen 2018 Executive Vice President Chief Banking Officer John D. Lane 2018 Executive Vice President Chief Credit & Risk Officer Thomas R. Neikirk 1994 Senior Vice President Commercial Lending Team Leader Alfred F. Thompson, Jr. 1996 Senior Vice President Credit Administration 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 Chief Financial Officer Greg T. Yurco 2019 Senior Vice President Senior Commercial Lender Julie E. Amsden 2019 Corporate Secretary 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 John Solich 2015 Vice President Commercial Lender Ashley Rispinto 2017 Vice President Commercial Lender Stanley Gregorin, Jr. 2018 Vice President Commercial Lender 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 J. Henkle 2015 Assistant Vice President Commercial Lender Warren R. Cox, II 2016 Assistant Vice President Sunbury Branch Manager 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 Melissa M. Maki 2018 Vice President Director of Marketing and Communications Karen D. Branham 1983 Assistant Vice President Bookkeeping 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 Middlefield Banc Corp. 2019 Summary Annual Report 13 MENTOR LAKE CHARDON ASHTABULA ORWELL BEACHWOOD NEWBURY SOLON TWINSBURG GEAUGA MIDDLEFIELD CORTLAND MANTUA GARRETTSVILLE TRUMBULL PORTAGE THE MIDDLEFIELD BANKING COMPANY LOCATIONS DELAWARE POWELL SUNBURY WESTERVILLE PLAIN CITY DUBLIN FRANKLIN COLUMBUS 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 Garrettsville 8058 State Street Garrettsville, Ohio 44231 330.527.2121 Lake County Loan Production Office 8373 Mentor Avenue Mentor, Ohio 44060 440.632.8140 Mantua 10519 Main Street P.O. Box 648 Mantua, Ohio 44255 330.274.0881 14 Middlefield Banc Corp. 2019 Summary Annual Report 14 Middlefield Banc Corp. 2019 Summary Annual Report CLEVELANDCOLUMBUSFRANKLINDELAWAREPORTAGETRUMBULLASHTABULA MENTOR LAKE CHARDON ASHTABULA ORWELL BEACHWOOD NEWBURY SOLON MIDDLEFIELD TWINSBURG GEAUGA CORTLAND MANTUA GARRETTSVILLE TRUMBULL PORTAGE 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 Newbury 11110 Kinsman Road Suite 1 P.O. Box 208 Newbury, Ohio 44065 440.564.7000 DELAWARE SUNBURY POWELL WESTERVILLE PLAIN CITY DUBLIN FRANKLIN COLUMBUS Orwell 30 South Maple Street P.O. Box 66 Orwell, Ohio 44076 440.437.7200 Plain City 490 South Jefferson Avenue Plain City, Ohio 43064 614.689.2622 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. 2019 Summary Annual Report 15 Middlefield Banc Corp. 2019 Summary Annual Report 15 CLEVELANDCOLUMBUSFRANKLINDELAWAREPORTAGETRUMBULLASHTABULA 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. 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. 16 Middlefield Banc Corp. 2019 Summary Annual Report 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. Boenning & Scattergood, Inc. 866.326.8094 614.228.5391 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 13, 2020, 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 998 shareholders of record as of February 12, 2020. 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 $ 22.49 $ 21.68 $ 25.24 $ 28.80 $ 25.63 $ 27.45 $ 26.18 $ 24.23 $ 19.76 $ 19.40 $ 19.93 $ 22.64 $ 23.13 $ 24.00 $ 23.05 $ 19.25 $ 0.150 $ 0.140 $ 0.140 $ 0.140 $ 0.165 $ 0.140 $ 0.140 $ 0.140 2019 First Quarter Second Quarter Third Quarter Fourth Quarter 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Middlefield Banc Corp. 15985 East High Street, Middlefield, Ohio 44062 888.801.1666 www.middlefieldbank.bank
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