Middlefield Banc Corp. Secures $138 Million in Paycheck Protection Program Loans for 1,259 Ohio-based Small Businesses

MIDDLEFIELD, Ohio, June 25, 2020 (GLOBE NEWSWIRE) -- Middlefield Banc Corp. (NASDAQ: MBCN) today announced that the Company has successfully secured $138 million for 1,259 small business applicants in the Small Business Administration's (“SBA”) Paycheck Protection Program (“PPP”). 

“As a community bank, we were able to quickly implement our PPP process and I am extremely proud of our entire organization’s hard work during this period.  In less than 60 days, our efforts helped 1,259 small businesses throughout Ohio navigate the unprecedented hardships caused by the COVID-19 crisis, while protecting over 12,000 jobs,” stated Thomas G. Caldwell, Middlefield’s President and Chief Executive Officer. 

“From April 4 to May 31, PPP loan volume was over 40 times higher than the SBA loans we processed in all of 2019.  Despite the surge in originations, we kept up with demand and I am pleased to report that approximately 47% of PPP applicants booked were to small businesses without a prior banking relationship.  Supporting both existing and new customer demand is a testament to the agility of our organization and our community-oriented values,” continued Mr. Caldwell. 

Reflecting the positive experience with Middlefield Bank, Shakorie Davis, the President of Next Generation Construction stated: “For me as a small business owner with 10 years of experience, trying to establish a banking relationship was tough. That is until I met the team over at Middlefield Bank. Middlefield helped my company obtain the Payroll Protection Loan in just one day! With that money I was immediately able to hire more staff and continue the growth of my business. I would highly recommend Middlefield Bank to any small business!”

Highlights of Middlefield’s PPP efforts through May 31, 2020 include:

• 1,259 PPP loans approved by the SBA
• Approximately 47% of booked PPP applications were businesses without a prior banking relationship
• Funded approximately $137.9 million in small business loans to Ohio based small businesses
• Helped save over 12,000 client jobs
• Provided an average loan size of $112,000
• Began funding loans on April 13, just 10 days after the program opened for applications
• As of May 31, 2020, year-to-date demand deposit accounts grew by 25% and aggregate core deposits increased by 19%, attributed to the PPP deposits and pandemic uncertainty
• Middlefield was prepared to help new and existing customers throughout the PPP process and remains well positioned to assist borrowers with the forgiveness process

About Middlefield Banc Corp

Middlefield Banc Corp., headquartered in Middlefield, Ohio, is the bank holding company of The Middlefield Banking Company with total assets of $1.21 billion at March 31, 2020.  The bank operates 16 full-service banking centers and an LPL Financial® brokerage office serving Beachwood, Chardon, Cortland, Dublin, Garrettsville, Mantua, Middlefield, Newbury, Orwell, Plain City, Powell, Solon, Sunbury, Twinsburg, and Westerville.  The Bank also operates a Loan Production Office in Mentor, Ohio.   

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This press release of Middlefield Banc Corp. and the reports Middlefield Banc Corp. files with the Securities and Exchange Commission often contain “forward-looking statements” relating to present or future trends or factors affecting the banking industry and, specifically, the financial operations, markets and products of Middlefield Banc Corp.  These forward-looking statements involve certain risks and uncertainties. There are a number of important factors that could cause Middlefield Banc Corp.’s future results to differ materially from historical performance or projected performance.  These factors include, but are not limited to: (1) a significant increase in competitive pressures among financial institutions; (2) changes in the interest rate environment that may reduce interest margins; (3) changes in prepayment speeds, charge-offs and loan loss provisions; (4) less favorable than expected general economic conditions; (5) legislative or regulatory changes that may adversely affect businesses in which Middlefield Banc Corp. is engaged; (6) technological issues which may adversely affect Middlefield Banc Corp.’s financial operations or customers; (7) the effect of the COVID-19 pandemic, including on our credit quality and business operations, as well as its impact on general economic and financial market conditions; (8) changes in the securities markets; or (9) risk factors mentioned in the reports and registration statements Middlefield Banc Corp. files with the Securities and Exchange Commission.  Middlefield Banc Corp. undertakes no obligation to release revisions to these forward-looking statements or to reflect events or circumstances after the date of this press release.