Middlefield Banc's Business Segments

Middlefield Banc Corp. Incorporated in 1988 under the Ohio General Corporation Law, Middlefield Banc Corp. (“Company”) is a bank holding company registered under the Bank Holding Company Act of 1956. The Company’s subsidiaries are:

The Middlefield Banking Company (“MBC”), an Ohio-chartered commercial bank that began operations in 1901. MBC engages in a general commercial banking business in northeastern and central Ohio. The principal executive office is located at 15985 East High Street, Middlefield, Ohio 44062-0035, and its telephone number is (440) 632-1666.

EMORECO Inc., an Ohio asset resolution corporation headquartered in Middlefield, Ohio. EMORECO engages in the resolution and disposition of troubled assets in central Ohio. The principal executive office is located at 15985 East High Street, Middlefield, Ohio 44062-0035, and its telephone number is (440) 632-1666.

The Middlefield Banking Company MBC was chartered under Ohio law in 1901. MBC offers customers a broad range of banking services including checking, savings, negotiable order of withdrawal (“NOW”) accounts, money market accounts, time certificates of deposit, commercial loans, real estate loans, a variety of consumer loans, safe deposit facilities, and travelers’ checks. MBC offers online banking and bill payment services to individuals and online cash management services to business customers through its website at www.middlefieldbank.com.

Middlefield Banc Corp is a financial institution that offers a diverse range of segments, products, and services catering to both individual and business clients. The bank is primarily engaged in providing a variety of loan products that address the needs of different customer segments, as well as offering other banking services. Here’s an extensive breakdown of the offerings:

Lending Segments

1. Residential Mortgage Loans
Middlefield Banc Corp offers a significant portfolio of residential mortgage loans, consisting of conventional loans secured by 1-4 family real estate. These mortgage products are crucial for individuals seeking to purchase homes and are available in specific regions, including Franklin, Geauga, Portage, Trumbull, and Ashtabula Counties. The residential mortgage products typically feature competitive interest rates and flexible terms aimed at making home ownership accessible to a wide demographic of borrowers.

Commercial and Industrial Loans
Middlefield provides a comprehensive suite of commercial loan services, designed to support businesses of varying sizes. This includes:

- Accounts Receivable Financing: Helping businesses receive cash flow by financing their outstanding invoices.
- Inventory Financing: Loans that allow businesses to finance their inventory needs.
- Short-Term Notes: Short-term loans that provide immediate financing needs.
- Working Capital Loans: Essential for day-to-day operational expenses.
- Guaranteed or Subsidized Loan Programs: These are designed to reduce the financial burden on small businesses.
- Renewable Operating Lines of Credit: Flexible credit options for ongoing business finance.
- Capital Equipment Financing: Tailored loans for the acquisition of necessary equipment.
- Loans to Professionals: Providing financing solutions for professional services.
- Term Business Loans and Commercial Real Estate Loans: Long-term financing solutions for business expansion and real estate investment.

Commercial real estate loans also encompass finance for properties used by the business owner and income-producing properties. These offerings are typically higher yielding than residential loans, which allows the bank to manage its interest rate risk more effectively.

Real Estate Construction Loans
Middlefield Banc Corp supports construction-related financing through several loan types:

- Residential Construction Loans: Available for both individuals who plan to occupy the property post-construction and builders undertaking new projects.
- Commercial Construction Loans: Loans specifically tailored for constructing commercial properties.
- Real Estate Acquisition and Development Loans: Financing aimed at purchasing and developing real estate.

The bank acknowledges the higher risk associated with construction loans due to the complexities involved, which is why these loans may have a term of up to one year, along with loan-to-value (LTV) ratios that do not exceed 80% for residential properties. The bank also offers residential construction-to-permanent loans, transforming construction financing into long-term mortgage solutions post-completion.

Consumer Installment Loans
Middlefield offers various consumer installment loans, accommodating both secured and unsecured options for a broad spectrum of personal needs:

- Secured Loans: Backed by collateral, these loans are typically associated with lower interest rates and can be utilized for purposes such as home improvements, auto purchases, recreational vehicles, and boats.
- Unsecured Loans: These loans, which do not require collateral, usually carry higher interest rates and are available for personal use.

The bank has structured its loan policies to limit the term for consumer loans secured by non-real estate collateral to five years, while unsecured loans may extend to three years. Longer terms generally necessitate real estate collateral.

Additional Services
In addition to lending products, Middlefield Banc Corp likely provides various banking services, including:

- Deposit Accounts: Savings accounts, checking accounts, and certificates of deposit (CDs) tailored to meet individual and business needs.
- Online Banking Services: Provision of digital platforms for easier account management and transactions.
- Financial Advisory Services: Support and counsel for clients on managing their financial resources effectively.

Conclusion
Middlefield Banc Corp stands out in the financial sector with its extensive array of loan products and services tailored for both consumers and businesses. Its dedication to providing competitive lending options, particularly in residential and commercial real estate, along with a robust set of consumer financing solutions, positions it as a pivotal player in meeting the diverse financial needs of its clientele.