NasdaqCM:MBCN

Stock Analysis Report

Executive Summary

Middlefield Banc Corp. operates as the bank holding company for The Middlefield Banking Company that provides various commercial banking services to small and medium-sized businesses, professionals, small business owners, and retail customers in northeastern and central Ohio.


Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Middlefield Banc's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MBCN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.7%

MBCN

-1.2%

US Banks

-1.1%

US Market


1 Year Return

16.8%

MBCN

10.3%

US Banks

17.9%

US Market

Return vs Industry: MBCN exceeded the US Banks industry which returned 10.3% over the past year.

Return vs Market: MBCN underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

MBCNIndustryMarket
7 Day0.7%-1.2%-1.1%
30 Day-2.6%-0.3%1.4%
90 Day-1.8%-0.9%6.9%
1 Year19.8%16.8%13.5%10.3%20.3%17.9%
3 Year30.3%21.9%24.0%15.1%47.8%38.3%
5 Year72.6%51.5%73.8%54.1%71.9%53.0%

Price Volatility Vs. Market

How volatile is Middlefield Banc's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Middlefield Banc undervalued compared to its fair value and its price relative to the market?

16.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MBCN ($24.99) is trading below our estimate of fair value ($29.9)

Significantly Below Fair Value: MBCN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MBCN is poor value based on its PE Ratio (12.7x) compared to the Banks industry average (12.6x).

PE vs Market: MBCN is good value based on its PE Ratio (12.7x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: MBCN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: MBCN is good value based on its PB Ratio (1.2x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Middlefield Banc forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-0.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MBCN's earnings are forecast to decline over the next 3 years (-0.7% per year).

Earnings vs Market: MBCN's earnings are forecast to decline over the next 3 years (-0.7% per year).

High Growth Earnings: MBCN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MBCN's revenue (6.1% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: MBCN's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MBCN's Return on Equity is forecast to be low in 3 years time (8.4%).


Next Steps

  • Explore growth companies in the Banks industry.

Past Performance

How has Middlefield Banc performed over the past 5 years?

16.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MBCN has high quality earnings.

Growing Profit Margin: MBCN's current net profit margins (28%) are lower than last year (28.7%).


Past Earnings Growth Analysis

Earnings Trend: MBCN's earnings have grown by 16.4% per year over the past 5 years.

Accelerating Growth: MBCN's earnings growth over the past year (2.3%) is below its 5-year average (16.4% per year).

Earnings vs Industry: MBCN earnings growth over the past year (2.3%) underperformed the Banks industry 12.2%.


Return on Equity

High ROE: MBCN's Return on Equity (9.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Middlefield Banc's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: MBCN has a low level of unsold assets or inventory.

Debt Coverage by Assets: MBCN's debt is covered by short term assets (assets are 3.5x debt).


Financial Institutions Analysis

Asset Level: MBCN's level of assets compared to its equity is low.

Allowance for Bad Loans: MBCN has a low allowance for bad loans.

Low Risk Liabilities: MBCN's liabilities are made up of primarily low risk sources of funding.

Loan Level: MBCN has an acceptable proportion of non-loan assets held.

Low Risk Deposits: MBCN's loans are broadly funded by customer deposits.

Level of Bad Loans: MBCN has an appropriate level of bad loans (0.88%)


Next Steps

Dividend

What is Middlefield Banc's current dividend yield, its reliability and sustainability?

2.40%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Middlefield Banc before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.4%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years2.5%

Current dividend yield vs market & industry

Notable Dividend: MBCN's dividend (2.4%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: MBCN's dividend (2.4%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: MBCN's dividends per share have been stable in the past 10 years.

Growing Dividend: MBCN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29%), MBCN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MBCN's dividends in 3 years are forecast to be well covered by earnings (32.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

19.3yrs

Average management tenure


CEO

Thomas Caldwell (62yo)

19.3yrs

Tenure

US$567,485

Compensation

Mr. Thomas G. Caldwell has been the Chief Executive Officer and President of Middlefield Banc Corp. since October 2000. Mr. Caldwell serves as the President and Chief Executive Officer of The Middlefield B ...


CEO Compensation Analysis

Compensation vs Market: Thomas's total compensation ($USD567.49K) is below average for companies of similar size in the US market ($USD1.11M).

Compensation vs Earnings: Thomas's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Caldwell
President19.3yrsUS$567.49k0.62% $990.7k
Donald Stacy
Senior VP19.3yrsUS$290.34k0.10% $162.9k
James Heslop
Executive VP18.3yrsUS$375.47k0.36% $571.7k
Teresa Hetrick
Executive VP of Operations & Administration and Assistant Secretary0yrsno data0.062% $99.4k
Andrew Berger
Managing Director0yrsno datano data
Kathleen Johnson
Secretary0yrsno datano data
Charles Moore
President of Central Ohio Region - Middlefield Banking Company4.1yrsno data0.035% $55.9k
Thomas Hart
Financial Consultant0yrsno datano data

19.3yrs

Average Tenure

63.5yo

Average Age

Experienced Management: MBCN's management team is seasoned and experienced (19.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Caldwell
President19.3yrsUS$567.49k0.62% $990.7k
James Heslop
Executive VP18.3yrsUS$375.47k0.36% $571.7k
Darryl Mast
Independent Director6.8yrsUS$45.84k0.48% $770.9k
James McCaskey
Vice Chairman0.8yrsUS$38.59k0.13% $211.3k
Carolyn Turk
Director16.1yrsUS$57.59k0.46% $735.7k
Kenneth Jones
Independent Director12.1yrsUS$42.64k0.14% $218.9k
William Skidmore
Chairman of the Board0.8yrsUS$44.59k0.27% $436.4k
Robert Toth
Independent Director10.8yrsUS$41.09k0.93% $1.5m
Eric Hummel
Independent Director8.8yrsUS$37.59k0.42% $671.9k
Clayton Rose
Independent Director6.1yrsUS$41.84k0.24% $379.5k

9.8yrs

Average Tenure

66yo

Average Age

Experienced Board: MBCN's board of directors are considered experienced (9.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MBCN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Middlefield Banc Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Middlefield Banc Corp.
  • Ticker: MBCN
  • Exchange: NasdaqCM
  • Founded: 1901
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$160.527m
  • Shares outstanding: 6.42m
  • Website: https://www.middlefieldbank.bank

Number of Employees


Location

  • Middlefield Banc Corp.
  • 15985 East High Street
  • PO Box 35
  • Middlefield
  • Ohio
  • 44062
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MBCNNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJun 2003

Biography

Middlefield Banc Corp. operates as the bank holding company for The Middlefield Banking Company that provides various commercial banking services to small and medium-sized businesses, professionals, small business owners, and retail customers in northeastern and central Ohio. It accepts checking, savings, negotiable order of withdrawal, and money market accounts, as well as time certificates of deposit and IRA accounts. The company offers operational and working capital, term business, residential construction, professional, and residential and mortgage loans, as well as consumer installment loans for home improvements, automobiles, boats, and other personal expenditures; loans to finance capital purchases; selected guaranteed or subsidized loan programs for small businesses; and agricultural loans. It also provides safe deposit facilities, travelers’ and official checks, money orders, and ATM services; online banking and bill payment services to individuals; and online cash management services to business customers. In addition, the company resolves and disposes troubled assets in Ohio. As of January 17, 2019, it had 15 full-service banking centers and an LPL Financial brokerage office serving Beachwood, Chardon, Cortland, Dublin, Garrettsville, Mantua, Middlefield, Newbury, Orwell, Powell, Solon, Sunbury, Twinsburg, and Westerville, as well as a loan production office in Mentor, Ohio. The company was founded in 1901 and is headquartered in Middlefield, Ohio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:31
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.