Investor Relations

Middlefield Banc Corp.

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Headquartered in Middlefield, Ohio, Middlefield Banc Corp. (“Middlefield”) is a bank holding company with total assets of $732.9 million at March 31, 2016.

or over 100 years, Middlefield has supported its communities by offering customers superior financial products, exceptional service, and modern banking amenities.  The company provides personal and commercial banking services to customers in five Ohio counties through a network of 10 branches and an LPO.  Middlefield is continually recognized throughout its communities for its history of strong financial performance.  This performance is a direct reflection of the company’s conservative operating approach and fundamental belief in safe and sound banking practices.  The LPO was opened to serve a new and adjacent county which becomes its ninth banking operation in a five county area in NE Ohio.   

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Company Snapshot(1)(2)

  • Share Price $31.96
  • 52 Wk. Range $27.37 – $34.75
  • Market Cap $60.0 million
  • 3 Mos. Avg. Daily Volume 192
  • Tangible Book Value $31.41
  • Price/Tangible Book 1.0x
  • TTM EPS $3.39
  • Price/TTM EPS 9.4x
  • Dividend (Yield) $1.08 (3.4%)
  • Year-End December
  • Established Bank 1901/HC 1988
  • Branches 10
  • Assets $732.9 million
  • Loans $524.0 million
  • Deposits $631.4 million
  1. Market data as of April 29, 2016
  2. Financial data for the period ended March 31, 2016

Upcoming Dividend Dates

(Subject to approval of the Board of Directors)

Record Date   Payment Date
June 3     June 15
September 2   September 15

Market

Middlefield Banc Corp. operates eight banking centers in four Northeast Ohio Counties, a new loan production office adjacent to its four Northeast counties and two banking centers in one Central Ohio County.

Investment Highlights

  • Middlefield is continually recognized as one of the most profitable community banks in the U.S. with assets under $1.0 billion
  • Total assets at March 31, 2016, compared to the same period last year, increased 4.7% to $732.9 million
  • Profitable throughout the economic cycle and never reported a quarterly loss
  • Increased the quarterly cash dividend by 3.8% in 2015
  • Excellent asset quality, strong liquidity profile, and robust core deposit base
  • Strong customer base and market share within its core markets
  • Its banking branch locations are in two major growth markets in northeast and central Ohio, with a combined population of more than four million people
  • Opened a new loan production office (LPO) in Mentor, Ohio in October 2015

Business Review

For the 2016 first quarter, net loans grew 11.6% and tangible book value per share increased 6.0% over the same period last year.  The first quarter reflects the additional investments Middlefield made for its new Mentor LPO and the addition of several new loan officers, which contributed to an 11.0% increase in noninterest expenses from the 2015 first quarter.  Management anticipates loan growth to show significant sequential improvements in the 2016 second quarter driven by increased productivity from new lenders.  Management continues to believe 2016 will benefit from the full-year contribution of its new lenders, business managers and Mentor LPO, which should favorably produce higher assets and loans, and improved profitability.

Market Profile

Middlefield operates in two distinct Ohio market areas.  The company’s Northeast Ohio markets consist principally of Geauga, Ashtabula, Trumbull, and Portage Counties, while the company’s central Ohio market consists of Franklin County, just north of Columbus.  Of the 381 MSAs in the U.S., both the Cleveland and Columbus MSAs are in the top 35 in the country with a combined population of more than 4.0 million people.  Further, Ohio has the eighth largest economy in the U.S.

Experienced Management Team

Middlefield has a strong leadership team focused on a community banking culture.  The company’s eight executive officers have an average tenure approaching 14 years at Middlefield and 30 years within the banking industry.  The company’s CEO, Thomas Caldwell, is an experienced banker and currently serves on the Federal Delegate Board of the Independent Community Bankers of America.  In addition, Mr. Caldwell previously served as Chairman of the Community Bankers Association of Ohio. 

Creating Shareholder Value

By focusing on conservative banking strategies, Middlefield has a history of creating value for its shareholders.  As a result, the company has never reported a quarterly loss, and during the last recession, maintained its dividend amount.  In 2015, Middlefield paid out $2.2 million, or 30.9% of its net income in dividends to shareholders.  For the 2016 first quarter, Middlefield paid out $0.5 million, or 34.2% of net income.

Further, the company maintains an emphasis on maximizing profitability by prudent expense management and proactively controlling its costs of funds.  As a result of these programs, Middlefield is continually recognized as one of the most profitable community banks in the country. 

Stable and Growing Loan Portfolio

The company lends to commercial and residential customers within its market areas.  The loan portfolio consists primarily of commercial and residential mortgages, with no national or sub-prime lending.  From 2005 through 2015, Middlefield’s loan portfolio grew at a compound annual growth rate of 8.6%.  At March 31, 2016, net loans were $524.0 million, an increase of 11.6% from the comparable period last year. 

Excellent Asset Quality and Strong Capital Levels

Q1-16 Q1-15 Q4-15 Q4-14 Q4-13
Nonperforming loans to total loans 1.98% 1.74% 1.92% 1.92% 2.82%
Nonperforming assets to total assets 1.63% 1.50% 1.59% 1.72% 2.32%
Allowance for loan losses to total loans 1.20% 1.35% 1.20% 1.45% 1.62%
Net charge-off ratio – annualized 0.10% 0.43% 0.16% 0.38% 0.19%
Tier I Capital Ratio (to Risk-weighted Assets) 9.19% 9.70% 9.69% 9.60% 9.50%

2016 First Quarter Financial Highlights
(on a year-over-year basis unless noted)

  • Net interest income increased 2.8% to $6.3 million.
  • Noninterest income grew 14.2% to $0.9 million.
  • Noninterest expenses increased 11.0%.
  • Net income was $1.5 million, or $0.79 per diluted share.
  • Tangible stockholders’ equity improved 2.5% from the 2015 fourth quarter.
  • Total net loans increased 11.6% to $524.0 million.
  • Tier 1 capital ratio remains strong at 9.19%.

This profile is for information purposes only. No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer, solicitation or recommendation to buy or sell this security. Investors should consult a professional investment adviser prior to making any investment decision. Statements contained in this profile that are not historical facts are forward-looking statements that involve risks and uncertainties. For a summary of important factors that could cause Middlefield Banc Corp.’s results to differ materially from those projected in, or inferred by, the forward-looking statements, please refer to the Company’s Annual Report on Form 10-K or quarterly report on Form 10-Q.

Shareholder Services

American Stock Transfer & Trust Company
6201 15th Avenue
Brooklyn, NY 11219
Toll Free: 800.937.5449
International: 718.921.8156
Fax: 718.236.2641
Web site: http://www.amstock.com
e-mail:
Stock Symbol: MBCN
American Stock Transfer & Trust Company
(Written Correspondence)
American Stock Transfer & Trust Company
P.O. Box 922
Wall Street Station
New York, NY 10269-0560

Customer Service Hours:

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Monday - Thursday, 8:00 a.m. to 7:00 p.m.
Friday, 8:00 a.m. to 5:00 p.m. EST.

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Central Ohio Northeast Ohio