2019 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