Middlefield Banc Corp. Annual Report 2020

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FY2020 Annual Report · Middlefield Banc Corp.

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2020
Summary
Annual Report

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1200000

1500000

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1500000

900000

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600000

900000

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300000

600000

300000

600000

300000

15000

12000

15000

12000

9000

12000

9000

6000

9000

6000

3000

6000

3000

TOTAL ASSETS
(in thousands)

NET LOANS OUTSTANDING
(in thousands)

TOTAL ASSETS
(in thousands)
$
1
,
2
4
8
,
3
9
$
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$
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4
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$
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1
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1
8
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4
7
5

$
NET LOANS OUTSTANDING
1
,
0
(in thousands)
9
0
,
6
2
$
6
1
,
0
9
0
,
6
2
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$
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7
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$
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$
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5
4
2

’16 ’17 ’18 ’19 ’20

Tangible Book
Value Per Share:

2020 $19.91 compared to 2019 $18.78
6% increase

over 2019

BOOK VALUE PER SHARE

NET INCOME
(in thousands)

NET INCOME
$
1
(in thousands)
2
,
4
3
1

$
1
2
,
4
3
1

$
9
,
4
5
5

$
1
2
,
4
3
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$
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1
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$
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5
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$
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,
4
1
6

$
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2
,
7
1
1

$
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,
3
4
9

BOOK VALUE PER SHARE
$
2
2
5
4

BOOK VALUE PER SHARE
$
2
1
4
5

$
2
1
4
5

$
2
2
5
4

$
1
9
7
7

$
1
8
6
3

$
1
9
7
7

$
1
8
6
3

$
1
7
0
7

$
2
2
5
4

$
2
1
4
5

’16 ’17 ’18 ’19 ’20

1200000

1000000

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800000

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600000

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400000

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200000

400000

200000

CHAIRMAN’S LETTER TO SHAREHOLDERS:

Middlefield’s performance during 2020 reflects the adaptability of our customers, employees,

and communities to the unprecedented effects of the COVID-19 pandemic. Our performance

also demonstrates the resiliency of our Bank, as normal business complexities were magnified

significantly during the early stages of the COVID-19 crisis. Each activity was approached

systematically to ensure we were doing our part to protect the health and safety of our

employees and customers, while continuing to provide our communities with essential financial

services. I am proud of how our various stakeholders worked together to serve our communities,

while remaining focused on our core operating values and our long-term growth initiatives.

As we developed our response to the COVID-19 crisis, the experience and talent of Middlefield’s leadership team and Board

of Directors were meaningful assets to the Bank. The Board received bi-monthly updates on credit quality, employee impacts,

and branch operations, as well as our ability as a community bank to continue offering services to our customers. We also

collaborated with management to support the Company’s efforts to rapidly establish procedures under the PPP and CARES

Act and make sure we were able to assist customers in their time of need.

Importantly, our strong platform allowed the Company to simultaneously respond to the near-term effects of COVID-19, while

remaining committed to actively pursuing Middlefield’s long-term growth objectives. I am also encouraged by the continued

development of new members of our leadership team and our ability to attract proven and experienced leaders to our Bank.

In 2020, Michael C. Voinovich was elected to serve on the Board of Directors of Middlefield Banc Corp., replacing a vacancy

left by William A. Valerian, who retired from our Board. Mike’s financial, banking, and capital market experience adds

immediate value to our Board, and I look forward to his future contributions. Eric Hummel also retired from our Board in

November. Both Bill and Eric were great ambassadors of the Bank and on behalf of everyone at the Company, thank you for

your years of service and guidance.

Beginning on January 1, 2021, a change in Director compensation was approved to increase the stock compensation our

Directors receive versus direct cash creating a higher level of Director ownership with no additional total increase in Director

fees. In addition, our corporate governance and nominating committee is pursuing an initiative to improve the diversity of our

Board and make sure we are doing our part to better reflect the diversity of our Ohio communities.

Middlefield’s long-term stock performance continues to demonstrate 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, 2010 to December 31, 2020, Middlefield’s ten-year total shareholder return, with reinvestment

of dividends at 257%, exceeds the KBW Regional Bank Index at 126% and the Nasdaq Bank Index at 141%.

The Board remains committed to creating value for shareholders. After a temporary suspension of our repurchase program in

March 2020 due to the COVID-19 pandemic, the program was resumed in November at which time the Board authorized an

increase to the Program. We currently have authorization to repurchase 300,000 shares of our common stock, which equates to

nearly 5% of the Company’s outstanding shares. Since then, in February 2021 the Board approved a nearly 7% increase in our

regular quarterly cash dividend payment, which reflects our continued desire to return capital to our shareholders.

I would like to end my letter with a special thank you to all of Middlefield’s team members. Our success and ability to serve our

customers throughout the COVID-19 pandemic is a direct result of your talent, dedication, and commitment. We remain humbled

by our associates’ support and strive to provide the resources and opportunities to advance their careers.

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. 2020 Summary Annual Report 1

TO OUR SHAREHOLDERS AND FRIENDS:

OUR SUCCESS
HAS BEEN
DRIVEN BY OUR
COMMITMENT
TO PROFITABLY
SERVE OUR
COMMUNITIES
AND OUR
DEDICATION TO
QUALITY, SAFETY,
AND SOUNDNESS.

In 2021, Middlefield will celebrate its 120th year in business. From

our humble beginnings, we have weathered more than our fair share

of business cycles to become one of the largest community banks in

the State of Ohio. Our success has been driven by our commitment to

profitably serve our communities and our dedication to quality, safety,

and soundness. These core values are not only responsible for our

legacy of growth but also helped our Bank successfully navigate the

unprecedented impacts of the COVID-19 pandemic.

Throughout the COVID-19 crisis, we focused on supporting our communities and during

the year we approved 1,414 loans under the Paycheck Protection Program (“PPP”) for

$143.8 million and helped protect over 12,000 client employees. In addition, approximately

47% of booked PPP applications were to businesses without prior banking relationships.

We are currently working with our PPP borrowers on their forgiveness process and expect to

recognize $3.3 million in interest and fees during 2021 because of our participation in the PPP.

We also increased our support for organizations within our local communities. During the

year, Middlefield partnered with United Way and Junior Achievement, while supporting

an emergency fund for Kent State University Geauga and Twinsburg Academic Center

students to help them remain in school during the pandemic. We also provided fabric and

materials through the Burton/Middlefield Rotary Club to aid in making over 3,000 masks

for UH Geauga Medical Center.

The uncertainty caused in the early stages of the COVID-19 crisis impacted many of our

markets. We stood by our customers and by the end of June we had extended nearly $215

million of deferrals to 362 borrowers. Demonstrating the strength of our asset quality, the

balance of deferred loans declined 89% and we ended the year with only $24.5 million of loans

in deferral status. The majority of these loans are to longstanding, high-quality borrowers and

we currently expect to end 2021 with no deferred loans remaining.

I am proud to report that Middlefield’s income, before taxes and provision for loan losses,

increased 21.0% during 2020 to $19.6 million reflecting strong core earnings growth, higher

noninterest income, and proactive expense management. In addition, total assets increased

17.7% in 2020 to a record $1.39 billion, and our book value per share increased 5.1% to a record

$22.54 per share.

Net income for 2020 declined to $8.3 million, or $1.30 per diluted share from $12.7 million, or

$1.95 per diluted share for 2019, primarily due to a $9.0 million increase in the provision for

loan losses as a result of the COVID-19 crisis and the resolution of an isolated commercial loan

that occurred in the 2020 third quarter. Higher provisions for loan losses resulted in a 98.9%

increase in our allowance for loan losses during 2020 and we ended the year with the highest

allowance for loan losses to nonperforming loans ratio in over 13 years. Over the near term,

we will continue to fund our allowance and increase our reserve which we believe is necessary

to preserve for potential incurred losses in the portfolio associated with the COVID-19 crisis.

2 Middlefield Banc Corp. 2020 Summary Annual Report

Unfortunately, the COVID-19 pandemic continues to have a severe impact on many segments

of the economy. Therefore, we are focused on supporting our communities, proactively

controlling asset quality, and strengthening our balance sheet. I believe this conservative

approach will allow us to continue to successfully navigate near-term economic uncertainty,

while providing the Company with flexibility to pursue long-term growth opportunities.

I am excited with the direction we are headed as we pursue compelling long-term growth

opportunities. As a community bank, we are well positioned to provide local support and quick

decision-making to customers, while also offering many modern conveniences found at larger

institutions. Our success acquiring new customers during the PPP process is a testament to

the agility of our organization and our community-oriented values, and we are working hard

to maintain these new relationships. In addition, more of our existing customers are engaging

with the Bank electronically. During the year, we experienced a 92% increase in business mobile

banking enrollments, a 20% increase in consumer mobile banking enrollments, and a 40%

increase in mobile deposit transactions. Expanding our electronic banking capabilities is an

important initiative for Middlefield and we are finding new ways to service our clients online.

Throughout 2021, we will continue to invest in our infrastructure to drive profitable growth

within our large Cleveland and Columbus markets. Initiatives include attracting and developing

proven leaders across our organization, additional investments in our digital strategy, new

marketing tools and resources, and further growing sources of noninterest income. Overall,

we believe we are well positioned to compete in our markets because of our local presence,

personalized financial services, and experienced leadership team.

No one could have expected the events of 2020, but we were able to successfully navigate this

period of great uncertainty through our commitment to profitably serving our communities

and our dedication to quality, safety, and soundness. In addition, our success demonstrates the

resolve of our customers, and the dedication of our 196 team members.

On behalf of everyone at the Middlefield Banc Corp., I appreciate your continued support.

We look forward to reporting on our progress as we focus on creating long-term value for

THROUGHOUT
2021 WE WILL
CONTINUE TO
INVEST IN OUR
INFRASTRUCTURE
TO DRIVE
PROFITABLE
GROWTH WITHIN
OUR LARGE
CLEVELAND
AND COLUMBUS
MARKETS.

our shareholders.

Thank you.

Sincerely,

Thomas G. Caldwell

President and Chief Executive Officer

Middlefield Banc Corp. 2020 Summary Annual Report 3

DECADE OF PROGRESS

(Dollar amounts in thousands, except earnings per share data)

2011

2012

2013

$ 29,727

$ 28,746

$ 28,178

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

5,250

22,928

196

22,732

3,145

16,870

9,007

1,979

$ 4,130

$ 6,281

$ 7,028

$654,551

$670,288

$647,090

580,962

593,335

568,836

47,253

55,437

53,473

395,061

400,654

428,679

6,819

2,487

113

7,779

1,208

120

7,046

929

125

$ 1.23

$ 1.64

$ 1.74

0.52

13.41

0.52

13.91

0.52

13.16

42.71%

31.87%

29.84%

$ 1,764

$ 2,002

$ 2,048

0.65%

10.24%

0.95%

11.98%

1.06%

13.17%

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. 2020 Summary Annual Report

2014

2015

2016

2017

2018

2019

2020

$ 27,874

$ 28,595

$ 29,994

$ 43,995

$ 50,357

$ 54,525

$ 52,638

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

9,250

43,388

9,840

33,548

5,990

29,788

9,750

1,401

$ 7,180

$ 6,865

$ 6,416

$ 9,455

$ 12,431

$ 12,711

$ 8,349

$677,531

$735,139

$787,821

$1,106,336

$1,248,398

$1,182,475

$1,391,979

586,112

63,867

463,738

6,846

570

139

624,447

629,934

878,194

1,016,067

1,020,843

1,225,200

62,304

76,960

527,325

602,542

6,385

6,598

776

143

357

139

119,863

916,023

7,190

453

190

128,290

984,681

7,428

602

200

137,775

977,490

143,810

1,090,626

6,768

1,550

189

13,459

3,149

184

$ 1.76

$ 1.71

$ 1.52

$ 1.56

$ 1.92

$ 1.96

$ 1.31

0.52

15.56

0.54

16.59

0.54

17.07

0.54

18.63

0.59

19.77

0.57

21.45

0.60

22.54

29.54%

30.90%

36.13%

35.52%

30.40%

28.99%

45.92%

$ 2,121

$ 2,153

$ 2,318

$ 3,358

$ 3,779

$ 3,685

$ 3,834

1.07%

12.17%

0.97%

10.62%

0.85%

9.33%

0.88%

8.52%

1.09%

9.94%

1.05%

9.35%

0.64%

5.87%

Middlefield Banc Corp. 2020 Summary Annual Report 5

CONSOLIDATED BALANCE SHEET

(Dollar amounts in thousands, except shares)

2020

2019

ASSETS
Cash and due from banks
Federal funds sold
Cash and cash equivalents
Equity securities, at fair value

Investment securities available for sale, at fair value

Loans held for sale
Loans:

Commercial real estate:

Owner occupied
Non-owner occupied

Multifamily
Residential real estate

Commercial and industrial
Home equity lines of credit
Construction and other
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
Other real estate owned
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

TOTAL LIABILITIES

STOCKHOLDERS’ EQUITY
Common stock, no par value; 10,000,000 shares authorized, 7,308,685 and
7,294,792 shares issued; 6,379,323 and 6,423,630 shares outstanding

Retained earnings
Accumulated other comprehensive income
Treasury stock, at cost; 929,362 and 871,162 shares

TOTAL STOCKHOLDERS’ EQUITY

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

See accompanying notes to the consolidated financial statements.

6 Middlefield Banc Corp. 2020 Summary Annual Report

$ 92,874
19,543
112,417
609

$ 35,113
—
35,113
710

114,360
878

103,121
309,424
39,562
233,995
232,044
112,543
63,573
9,823

1,104,085
13,459

1,090,626
18,333
15,071
1,724
16,938
7,387
13,636

105,733
1,220

102,386
302,180
62,028
234,798
89,527
112,248
66,680
14,411

984,258
6,768

977,490
17,874
15,071
2,056
16,511
155
10,542

$1,391,979

$1,182,475

$ 291,347
195,722
198,493
243,888
295,750

1,225,200

—
—

—
17,038
5,931

$ 191,370
107,844
160,826
192,003
368,800

1,020,843

75
5,000

5,075
12,750
6,032

1,248,169

1,044,700

86,886
69,578
4,284
(16,938)

143,810

86,617
65,063
1,842
(15,747)

137,775

$1,391,979

$1,182,475

CONSOLIDATED STATEMENT OF INCOME

(Dollar amounts in thousands, except per share data)

2020

2019

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) gain 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
Gain on other real estate owned
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

$49,003
118
22

909
2,472
114

52,638

8,962
79
209

9,250

43,388
9,840

33,548

2,539

—
(101)
427
1,487
1,638

5,990

15,835
2,158
1,308
2,650
1,082
423
1,359
(172)
698
351
332
3,764

29,788

9,750
1,401

$ 8,349

$ 1 . 31
1.30

$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

16,783
2,164
1,040
2,208
1,044
230
1,683

(125)
733
638
341
3,294

30,033

15,303
2,592

$12,711

$ 1.96
1.95

See accompanying notes to the consolidated financial statements.

Middlefield Banc Corp. 2020 Summary Annual Report 7

SUPPORTING OUR COMMUNITIES

Mantua Branch
Universal Banker
Alyssa Boxler gets
ready to hide MB
mugs with $5 giftcards
around downtown as
part of the “You Got
Mugged!” marketing
promotion with
Restoration 44 Coffee.

Main Branch Manager Larry Maniche
holds Middlefield DQ Blizzard Cupcake
supporting our local customer’s
fundraiser to benefit Rainbow Babies
and Children’s Hospital.

SVP, Senior Commercial Lender Greg
Yurco poses next to the all-new
Rally’s restaurant in downtown Niles,
Ohio financed by Middlefield Bank.

MB’s “Major League” inspired
bowling team joined up with Junior
Achievement of Mahoning Valley to
raise $500 for youth financial literacy.

Custom art created
for Plain City’s 2020
Virtual Chalk Art
Festival, co-sponsored
by Middlefield Bank.

Marketing Director Melissa Maki reads
to students at Lakeview Elementary on
Dr. Seuss Day as part of United Way of
Trumbull County’s Read 4 Fun program.

Note: Photos without masks were taken prior to the pandemic.

8 Middlefield Banc Corp. 2020 Summary Annual Report

Central Ohio President Charles O.
Moore is presented with the first
annual Westerville Area Chamber’s
Veteran Champion of the Year
award for his service in both the
Army and Marine Corps.

United Way of Greater Cleveland’s Karen Perko holds
a $3,000 check presented by MB for their tireless
COVID-19 relief efforts.

Andrea Pollock of Next Step in Chardon, a young
adult hardship support program, holds a check for
$2,300 raised through in-branch candy bar sales.

Universal Banking Supervisor Rachel Dean presents Geauga
County’s Humane Society, Rescue Village, with a check for $1,200
raised from in-branch candy bar sales.

Plain City’s Robin Scott presents a
charitable donation to Tamara Reed
of Daily Needs Assistance at the
branch’s opening day celebration.

Kent State University Geauga and Regional Academic Center
students hold a check for $2,500 presented as a matching donation
to their Last Dollar Scholarship and Emergency Fund.

Middlefield Banc Corp. 2020 Summary Annual Report 9

COMMUNITY INVOLVEMENT 2020

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.

When the local needs escalated during the pandemic, the
Bank shifted focus on the COVID-19 relief efforts ranging
from basic needs, homemade masks, and financial literacy.

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.

10 Middlefield Banc Corp. 2020 Summary Annual Report

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 (Ashtabula, Central Ohio, Greater
Next Step (Geauga & Portage)
Rotary Clubs (Burton/Middlefield and Chardon)
Safer Futures (Portage)
United Way (Central Ohio, Delaware, Greater Cleveland,

Cleveland & Mahoning Valley)

Geauga, Lake, Portage, Union, Summit & Trumbull)

In 2020, we renewed our annual partnership with Kent
State University Geauga and Twinsburg Academic Center.
The Bank’s matching campaign during Giving Tuesday
(November 2020) was a direct response to keeping
students in school during the pandemic through the Last
Dollar Scholarships and emergency funds program. Due
to the current pandemic, our students need more support
than ever while they balance remote learning, finding
new jobs, helping their families, and more to pursue their
degrees. The campaign raised more than $7,500 for local
students attending Kent State University Geauga and
Twinsburg Academic Center.

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

CLAYTON W. ROSE, III, C.P.A. 2014
Retired: Executive Principal
Rea & Associates, Inc.

THOMAS G. CALDWELL 1997
President and Chief Executive Officer
Middlefield Banc Corp.
The Middlefield Banking Company

KENNETH E. JONES 2008
Retired Financial Executive

THOMAS BEVAN 2017
Chief Executive Officer
Bevan & Associates, LPA, 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

MICHAEL VOINOVICH 2020
Executive Vice President and
Chief Investment Officer of
ECHO Health, Inc.

JAMES J. McCASKEY 2004
President
McCaskey Landscape and Design, LLC

DARRYL E. MAST 2013
Retired: Hattie Larlham Care Group and
Hattie Larlham Foundation

KEVIN DIGERONIMO* 2021
President
DiGeronimo Development

Central Ohio Region Advisory Board: JEFFREY A. GONGWER; GEORGE J. KONTOGIANNIS, AIA; TIMOTHY C. LONG; MICHAEL J. MORAN
*Director of The Middlefield Banking Company

Middlefield Banc Corp. 2020 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

THE MIDDLEFIELD BANKING COMPANY
OFFICERS

THOMAS G. CALDWELL 1986
President and
Chief Executive Officer

MATTHEW E. BELLIN 2006
Senior Vice President
Commercial Lending Team Leader

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

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

MICHAEL C. RANTTILA 2017
Senior Vice President
Chief Financial Officer

12 Middlefield Banc Corp. 2020 Summary Annual Report

GREG T. YURCO 2019
Senior Vice President
Senior Commercial Lender

GARY C. KERN 2020
Senior Vice President
Chief Information Officer

JULIE E. AMSDEN 2019
Corporate Secretary

DAVID KUCERA 2004
Vice President
Controller

LAURA E. NEALE 2010
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

STANLEY GREGORIN, JR. 2018
Vice President
Commercial Lender

MELISSA M. MAKI 2018
Vice President
Director of Marketing and
Communications

PATRICK G. PAOLETTA 2020
Vice President
Commercial Lender

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

MELISSA K. GAY 2008
Assistant Vice President
Bank Secrecy Act Officer

JEAN M. CARTER 2009
Assistant Vice President
Chardon Branch Manager

DALE L. MOORE 2009
Assistant Vice President
Project Coordinator
Bank Security Officer

BRETT A. RICHEY 2010
Assistant Vice President
Special Assets Manager

STEPHEN J. LEBOLD 2012
Assistant Vice President
Westerville Branch Manager

LISABETH A. MULDOWNEY 2012
Assistant Vice President
Garrettsville Branch Manager

RACHEL GORDON 2015
Assistant Vice President
Financial Reporting Manager

WARREN R. COX, II 2016
Assistant Vice President
Sunbury Branch Manager

PATRICIA WADE 2020
Assistant Vice President
Commercial Lender

RACHEL DEAN 1985
Banking Officer
Universal Banking Supervisor

LISA A. SANBORN 2000
Banking Officer
E-Banking Support Manager

MICHELLE L. BAHLEDA 2014
Banking Officer
Lender

CHRISTOPHER N. PRATT 2014
Banking Officer
Customer Experience Officer

Middlefield Banc Corp. 2020 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

14 Middlefield Banc Corp. 2020 Summary Annual Report

CLEVELANDCOLUMBUSFRANKLINDELAWAREPORTAGETRUMBULLASHTABULA
MENTOR

LAKE

CHARDON

ASHTABULA
ORWELL

BEACHWOOD

NEWBURY

SOLON

MIDDLEFIELD

TWINSBURG

GEAUGA

CORTLAND

MANTUA

GARRETTSVILLE

TRUMBULL

PORTAGE

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

Plain City
490 South Jefferson Avenue
Plain City, Ohio 43064
614.689.2622

Administrative Offices
15200 Madison Road
Middlefield, Ohio 44062
888.801.1666

Garrettsville
8058 State Street
Garrettsville, Ohio 44231
330.527.2121

Powell
10628 Sawmill Parkway
Powell, Ohio, 43065
614.392.5702

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

Lake County Loan
Production Office
8373 Mentor Avenue
Mentor, Ohio 44060
440.632.8140

Mantua
10691 Main Street
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

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. 2020 Summary Annual Report 15

DELAWARE

SUNBURY

POWELL

WESTERVILLE

PLAIN CITY

DUBLIN

FRANKLIN

COLUMBUS

CLEVELANDCOLUMBUSFRANKLINDELAWAREPORTAGETRUMBULLASHTABULAOUR CORE VALUES

CORE VALUES

Community
Fostering relationships

and maintaining the tradition

of local support by being

a trusted ambassador of

the Bank. Every interaction

within our communities is

an opportunity to build deeper

relationships with our customers

and prospective customers.

Customer
Service
Forging relationships

by adding value

through proactive

and responsive service.

QUALITY

Team Focus
Our team members are

our most valuable asset.

We support one another

through collaboration,

passion, and professionalism.

Our people differentiate us

from our competitors.

16 Middlefield Banc Corp. 2020 Summary Annual Report

Shareholder
Commitment
Continuously building

shareholder value by

providing prudent and

management combined

stewardship of our resources.

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. Eastern Time
on Wednesday May, 12, 2021, via a live webcast at
http://www.meetingcenter.io/227318170.

You will need the control number located on your
proxy card to participate.

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 977
shareholders of record as of February 3, 2021. 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

$ 27.73
$ 23.00
$ 21.50
$ 24.03

$ 22.49
$ 21.68
$ 25.24
$ 28.80

$ 12.00
$ 15.16
$ 17.15
$ 18.77

$ 19.76
$ 19.40
$ 19.93
$ 22.64

$ 0.150
$ 0.150
$ 0.150
$ 0.150

$ 0.150
$ 0.140
$ 0.140
$ 0.140

2020
First Quarter
Second Quarter
Third Quarter
Fourth Quarter

2019
First Quarter
Second Quarter
Third Quarter
Fourth Quarter

Middlefield Banc Corp.

15985 East High Street, Middlefield, Ohio 44062

888.801.1666