Note 16 - Regulatory Restrictions

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Banking and Thrift Disclosure [Text Block]

16. REGULATORY RESTRICTIONS

The Company is subject to the regulatory requirements of the Federal Reserve System as a bank holding company. The bank is subject to regulations of the Federal Deposit Insurance Corporation (“FDIC”) and the State of Ohio, Division of Financial Institutions.

Cash Requirements

The Federal Reserve Bank of Cleveland requires the Company to maintain certain average reserve balances. As of

December 31, 2019

and

2018,

the Bank had required reserves of

$16.5

million and

$17.3

million comprised of vault cash and a depository amount held with the Federal Reserve Bank.

Loans

Federal law prevents the Company from borrowing from the Bank unless the loans are secured by specific obligations. Further, such secured loans are limited in amount of

10%

of the Bank’s common stock and capital surplus.

Dividends

MBC is subject to dividend restrictions that generally limit the amount of dividends that can be paid by an Ohio state-chartered bank. Under the Ohio Banking Code, cash dividends

may

not

exceed net profits as defined for that year combined with retained net profits for the

two

preceding years less any required transfers to surplus. Under this formula the amount available for payment of dividends for

2019

approximates

$20.5

million plus

2020

profits retained up to the date of the dividend declaration.