Investor Relations

Middlefield Banc Corp.

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Middlefield Banc Corp. performance over the years is a direct reflection of the basic fundamentals with which we operate the company. The approach that is consistently applied to risk taking is conservative and managed, as we fully believe in the tenets of safe and sound banking operation. This permits our management team to focus on creating value for our shareholders, while providing the highest quality financial products and services within the communities we serve, delivered by a customer-centric team of financial professionals.

For Middlefield Banc Corp., our performance has been highlighted by solid success. The core of our company is strong. We will continue to remain focused on delivering excellent customer service, increasing value to our shareholders, and operating our company under safe and sound banking principles. As we enter the future, we see many exciting opportunities in which to build upon the success that we have enjoyed in the past. We fully believe that we are well positioned to enhance our earnings potential and grow our franchise through our strong team of community bankers and favorable markets.

Company Snapshot(1)(2)

  • Share Price $33.25
  • 52 Wk. Range $25.07 – $35.86
  • Market Cap $68.1 million
  • 3 Mos. Avg. Daily Volume 300
  • Tangible Book Value $27.74
  • Price/Tangible Book 1.2x
  • TTM EPS $3.49
  • Price/TTM EPS 9.5x
  • Dividend (Yield) $1.04 (3.1%)
  • Year-End December
  • Established Bank 1901/HC 1988
  • Branches 10
  • Assets $680.3 million
  • Loans $460.9 million
  • Deposits $600.0 million
  1. Market data as of November 28, 2014
  2. Financial data for the period ended September 30, 2014

Investment Highlights

  • Middlefield is continually recognized as one of the most profitable community banks in the U.S. with assets under $1.0 billion
  • Profitable throughout the economic cycle and never reported a quarterly loss
  • History of quarterly cash dividend payments and maintained dividend amount during recession
  • Excellent asset quality, strong liquidity profile, and robust core deposit base
  • Strong customer base and market share within its core markets
  • Expanded into Central Ohio with the April 2007 acquisition of Emerald Bank
  • Acquired Westerville branch in November 2008

Sources of Growth

Management understands the need to grow its banking franchise in order to operate in a banking environment that continues to experience historically low interest rates and increased regulatory costs. Throughout 2014, the company has been investing in its business by enhancing its operations, products, and services, and adding senior managers to assist with the company’s growth objectives. Middlefield has improved the way customers interact with the bank by enhancing its on-line banking services and adding new mobile banking capabilities. In the 2014 third quarter, the company entered the secondary mortgage market, which will further enhance its product offerings and increase Middlefield’s noninterest income.

Market Overview

Middlefield operates in two distinct Ohio market areas. The company’s Northeast Ohio markets consists 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. The company’s specific markets are seeing a pickup in economic activity driven by improvements in manufacturing and consumer spending, as well as opportunities from the Marcellus and Utica Shale formations.

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 of 14 years at Middlefield and 25 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 2013 Middlefield paid out $2.1 million, or 29.8% of its net income in dividends to shareholders and aims to pay out approximately 30% of its earnings in dividends.

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 2004 to 2013 Middlefield’s loan portfolio grew at a compound annual growth rate of 8.3%, and at September 30, 2014 was $460.9 million, an increase of 12.1% from the comparable period last year.

Excellent Asset Quality and Strong Capital Levels

Q3-14 Q2-14 Q1-14 Q4-13 Q3-13
Nonperforming loans to total loans 2.23% 2.33% 2.42% 2.82% 3.25%
Nonperforming assets to total assets 1.93% 1.93% 2.00% 2.32% 2.48%
Allowance for loan losses to total loans 1.56% 1.58% 1.58% 1.62% 1.87%
Net charge-off ratio – annualized (0.08%) 0.01% 0.19% 0.20% 0.08%
Tier I Capital Ratio (to Risk-weighted Assets) 9.50% 9.31% 9.15% 9.04% 8.70%

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:

Automated and online support is available 24 hours a day, 365 days a year, or speak to a personal representative from
Monday - Thursday, 8:00 a.m. to 7:00 p.m.
Friday, 8:00 a.m. to 5:00 p.m. EST.
The e-mail links provided are not transmitted via secure domain and confidential information such as passwords, Social Security numbers, account numbers, etc. should not be included in your correspondence.
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