![]() Exhibit 99.1 Middlefield Banc Corp. Annual Shareholder Meeting May 13, 2015 |
![]() Forward Looking Statements This presentation contains forward-looking statements within the meaning of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995 concerning Middlefield Banc Corp.’s plans, strategies, objectives, expectations, intentions, financial condition and results of operations. These forward-looking statements reflect management’s current views and intentions and are subject to known and unknown risks, uncertainties, assumptions and other factors that could cause the actual results to differ materially from those contemplated by the statements. The significant risks and uncertainties related to Middlefield Banc Corp. of which management is aware are discussed in detail in the periodic reports that Middlefield Banc Corp. files with the Securities and Exchange Commission (the “SEC”), including in the “Risk Factors” section of its Annual Report on Form 10-K and its Quarterly Report on Form 10-Q. Investors are urged to review Middlefield Banc Corp.’s periodic reports, which are available at no charge through the SEC’s website at www.sec.gov and through Middlefield Banc Corp.’s website at www.middlefieldbank.com on the “Investor Relations” page. Middlefield Banc Corp. assumes no obligation to update any of these forward-looking statements to reflect a change in its views or events or circumstances that occur after the date of this presentation. 2 |
![]() Board of Directors 3 Thomas G. Caldwell James R. Heslop, II Eric W. Hummel Kenneth E. Jones Darryl E. Mast Clayton W. Rose, III James J. McCaskey William J. Skidmore Joseph J. Thomas Robert W. Toth Carolyn J. Turk |
![]() Experienced Management Team Management Position Age MBCN Industry Thomas G. Caldwell President & CEO 57 28 38 James R. Heslop, II EVP & COO 61 19 36 Donald L. Stacy SVP & CFO 61 15 36 Jay P. Giles SVP - Senior Loan Officer 65 16 42 Teresa M. Hetrick SVP - Operations 51 18 27 Jeffrey N. Male SVP - Chief Residential Mortgage Officer 65 1 42 Kevin L. Miller SVP - Chief Information Officer 55 1 33 David G. Dalessandro SVP - Chief Credit Office 58 5 33 James L. Long President, Central Ohio Region 64 6 42 Courtney M. Erminio VP - Risk Officer 33 5 12 Alfred F. Thompson, Jr. VP - Loan Administration 55 19 28 Thomas Caldwell serves on the Federal Delegate Board of the Independent Community Bankers of America, having been elected in June 2010. He previously served as Chairman of the Community Bankers Association of Ohio. 4 |
![]() Meeting Overview Welcome to the Middlefield Banc Corp. 2015 Annual Shareholder Meeting Company Snapshot (1)(2) NASDAQ: MBCN Stock Price: $31.71 Market Cap: $65.1 million Dividend (yield): $1.04 (3.3%) Headquarters: Middlefield, Ohio Established: Bank 1901/HC 1988 Branches: 10 Total Assets: $699.9 million Net Loans $469.4 million Total Deposits: $617.1 million (1) Stock price, market cap and dividend yield as of April 22, 2015 (2) Financial figures for the period ended March 31, 2015 5 Stock Price $17.25 $25.25 $26.00 $33.61 12/31/2011 12/31/2012 12/31/2013 12/31/2014 |
![]() 6 Nasdaq Ceremony |
![]() 7 CEO Report |
![]() Business Overview Ended 2014 with record net loans outstanding, net income, and stockholders’ equity 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 returns and efficiency ratios Two strong Ohio banking markets For over 100 years, Middlefield Banc Corp. has supported its communities by offering customers superior financial products, exceptional service, and modern banking amenities 8 |
![]() Branch Locations 9 |
![]() Recent Rankings and Awards SNL Financial (3) According to a June 16, 2014 article from SNL Financial, Middlefield Banc Corp. had the 10 th highest ROAE out of public community banks with under $1 billion in assets. Independent Banker (4) According to May 30, 2014 study from Independent Banker, Middlefield Banc Corp. had the 21 st highest ROE of community banks with assets of $500 million to $1 billion KBW (2) On April 13, 2015, Middlefield was named one of 25 U.S. banking institutions to KBW’s coveted “Bank Honor Roll” of superior performers. Honor Roll members are publicly traded banking institutions with more than $500 million in total assets that have not reported an annual loss over the past 10 years, had 2014 annual EPS equal to or greater than peak EPS over the past 10 years, and consecutive increases in EPS since 2009. American Banker (1) Middlefield Banc Corp. was ranked 38 th out of the top 200 community banks and thrifts by 3-year Avg. ROE according to an April 27, 2015 American Banker article. 10 (1) American Banker April 27, 2015 (2) KBW April 13, 2015 (3) SNL June 16, 2014 (4) Independent Banker Sources: http://www.americanbanker.com/ http://www.kbw.com/content/the-firm-PDFs/press-releases/KBW-2015-Bank-Honor-Roll-04.13.15.pdf http://independentbanker.org/2014/05/community-banks-with-assets-of-more-than-500-million-to-1-billion/ Disproving the naysayers, some banks under $1B thrive By Kiah Lau Haslett and Marshall Schraibman |
![]() Financial Summary Dollars in thousands 2009 2010 2011 2012 2013 2014 Net interest income 14,268 18,149 21,075 22,299 22,928 23,804 Provision for loan losses 2,578 3,580 3,085 2,168 196 370 Noninterest income 2,668 2,623 2,237 3,451 3,145 3,588 Noninterest expense 12,650 14,763 15,501 15,639 16,870 17,850 Income before income taxes 1,708 2,429 4,726 7,943 9,007 9,172 Income taxes (73) (88) 596 1,662 1,979 1,992 Net income 1,781 2,517 4,130 6,281 7,028 7,180 Net interest margin 3.30% 3.41% 3.65% 3.74% 3.85% 3.93% Total assets 558,658 632,197 654,551 670,288 647,090 677,531 Loans outstanding, net 348,660 366,277 395,061 400,654 428,679 463,738 Deposits 487,106 565,251 580,962 593,335 568,836 586,112 Equity capital 36,707 38,022 47,253 55,437 53,473 63,867 Earnings per share 1.15 1.60 2.45 3.29 3.48 3.52 Cash dividend (per share) 1.04 1.04 1.04 1.04 1.04 1.04 Dividend pay-out ratio 90.28% 65.04% 42.71% 31.87% 29.84% 29.54% Return on average assets 0.36% 0.41% 0.65% 0.95% 1.06% 1.07% Return on average equity 4.90% 6.44% 10.24% 11.98% 13.17% 12.17% 11 |
![]() Annual Profitability Net Income (In millions) Diluted EPS MBCN has been consistently profitable through the economic cycle and has never reported a quarterly loss. 12 $1.8 $2.5 $4.1 $6.3 $7.0 $7.2 09 10 11 12 13 14 $1.15 $1.60 $2.45 $3.29 $3.48 $3.52 09 10 11 12 13 14 |
![]() Annual Returns Return on Average Equity Return on Average Assets 13 4.90% 6.44% 10.24% 11.98% 13.17% 12.17% 09 10 11 12 13 14 0.36% 0.41% 0.65% 0.95% 1.06% 1.07% 09 10 11 12 13 14 |
![]() Market Demographics Stronger than State Market Rank Company Total Median Median Value Unemployment Based on Deposits in Population Household Owner-Occupied Rate Share of Market 2013 Income Housing Units December County Deposits ($000) (1) (est.) (2) 2013 ($) (2) 2013 ($) (2) 2014 (%) (3) Geauga 1 360,742 93,972 66,428 224,700 4.3 Geauga County has the 3rd highest Portage 6 92,232 163,862 52,337 150,300 4.8 median household income in the State. Franklin 25 61,079 1,212,263 51,460 150,800 3.8 Trumbull 10 48,954 206,442 41,798 97,400 7.5 Ashtabula 8 26,837 101,497 40,839 110,800 5.8 Aggregate: Entire State of Ohio 11,570,808 48,308 130,800 4.8 Aggregate: National 316,128,839 53,046 176,700 5.6 (1) Obtained from the FDIC's Summary of Deposits data, as of June 30, 2014 (www.fdic.gov). (2) Information from the U. S. Census Bureau (www.quickfacts.census.gov). (3) Sourced from Ohio Department of Job and Family Services and the Bureau of Labor Statistics. Eight of the bank's 10 offices (and more than 86% of its deposits) are located in counties that have stronger demographics than the State averages (median household income, median value of owner-occupied housing, and employment rates). 14 |
![]() Deposit Market Share Ashtabula, Geauga, Portage & Trumbull Counties June 30, 2014 Rank in Market Institution Number of Branches Total Market Share (%) 1 The Huntington National Bank 38 1,532,821 20.60 2 JP Morgan Chase Bank, N.A. 19 894,279 12.02 3 8 528,765 7.11 4 KeyBank, National Association 15 522,389 7.02 5 PNC Bank, National Association 11 506,911 6.81 6 Talmer Bank and Trust 9 464,660 6.24 7 Cortland Savings & Banking Co. 10 385,484 5.18 8 FirstMerit Bank, N. A. 12 347,397 4.67 Total for institutions in Market 190 7,441,520 15 Total Deposits in Market ($M) The Middlefield Banking Company |
![]() Annual Loan Growth (1) (1) Dollars in millions 16 $463.8 $428.7 $400.7 $395.1 $366.3 $348.7 14 13 12 11 10 09 |
![]() Loan Portfolio at December 31, 2014 17 13% 7% 48% 31% 1% Commercial & Industrial Real Estate - Construction Residential Mortgage Commercial Mortgage Consumer Installment |
![]() Asset Quality 2010 2011 2012 2013 2014 Nonperforming Loans $19,986 $24,546 $14,224 $12,290 $9,048 Real Estate Owned 2,302 2,196 1,846 2,698 2,590 Nonperforming Assets $22,288 $26,742 $16,070 $14,988 $11,638 Nonperforming Assets/ Total Assets (%) 3.52% 4.09% 2.40% 2.32% 1.72% Allowance for Loan Losses $6,221 $6,819 $7,779 $7,046 $6,846 Allowance/Total Loans (%) 1.67% 1.70% 1.90% 1.62% 1.45% Net Charge-off Ratio (%) 0.63% 0.65% 0.30% 0.19% 0.38% - Problem assets peaked in 2011, primarily driven by non-owner occupied 1 - 4 family in Central Ohio market. - Net charge-offs returned to normalized levels in 2012. - Strong reserve coverage provides flexibility in managing potential losses with reduced impact on net income. 18 |
![]() Managed Deposit Growth (1) Cost of deposits declined from 2.69% in 2009 to 0.74% in 2014 (1) Dollars in millions 19 $487.1 $565.3 $581.0 $593.3 $568.8 $586.1 09 10 11 12 13 14 |
![]() Strong Core Deposit Base at December 31, 2014 20 15% 2% 62% 19% 2% Non-interest bearing Demand Money Market Time Interest-bearing Demand Savings |
![]() Capital Ratios at December 31, 2014 To Be Well Capitalized Middlefield Banc Corp. The Middlefield Banking Company Tier 1 Risk-Based Capital 6.00% 13.38% 12.95% Total Risk-Based Capital 10.00% 14.64% 14.19% Tier 1 Leverage Capital 5.00% 9.60% 9.25% All capital ratios exceed regulatory requirements to qualify as well capitalized. 21 |
![]() 2014 Initiatives Personnel/Talent Strong management to drive performance growth Sales-orientation and cultural fit Operations/Risk Management Expanded technology Scaled to support growth initiatives Diligent risk management incorporating regulatory environment Expand Share of Market/Share of Customer Identify target markets and customer segments Commercial relationship opportunities De novo expansion and strategic acquisitions 22 |
![]() Today’s Banking Landscape High level of competition for share of wallet Increasing regulatory concerns with added costs for smaller banks Economic challenges with a continued low rate environment and slow growth Uncertain loan demand 23 |
![]() 2015 and Forward Grow Secondary Mortgage Offering 2015 Strategic Planning Exercise Provides Confidence in Middlefield’s: Market position Product and service offerings Growth initiatives Continue to Expand Share of Market/Share of Customer Identify target markets and customer segments Commercial relationship opportunities De novo expansion and strategic acquisitions 24 |
![]() Questions, Comments, and Discussion 25 |
![]() Voting Results Election of three Directors Non-binding proposal on compensation Ratification of appointment of S.R. Snodgrass, P.C. 26 |
![]() Thank you for your support! May 13, 2015 27 |