Middlefield Banc Corp.

Financial Statement

(Quarterly)

MIDDLEFIELD BANC CORP.
CONSOLIDATED BALANCE SHEET
(Unaudited)

				June 30,		December 31
				2006		2005

ASSETS
	Cash and due from banks		$	5,062,693	$	5,294,641
	Interest-bearing deposits in other institutions			533,772		526,523
	Cash and cash equivalents			5,596,465		5,821,164
	Investment securities available for sale			54,372,565		57,887,130
	Investment securities held to maturity (estimated market value of $222,691 and $232,967)			215,829		221,453
	Loans			240,402,350		234,054,797
	Less allowance for loan losses			2,952,858		2,841,098
		Net loans		237,449,492		231,213,699
	Premises and equipment			6,527,452		6,624,776
	Bank-owned life insurance			6,746,154		5,632,982
	Accrued interest and other assets			4,240,637		3,812,987

		TOTAL ASSETS	$	315,148,594	$	311,214,191

LIABILITIES
	Deposits:
		Noninterest-bearing demand	$	39,476,009		39,782,375
		Interest-bearing demand		9,893,791		9,362,399
		Money market		11,898,950		13,078,829
		Savings		60,044,039		66,495,057
		Time		132,962,984		120,730,980
		Total deposits		254,275,773		249,449,640
	Short-term borrowings			2,962,647		6,710,914
	Other borrowings			28,590,484		26,578,211
	Accrued interest and other liabilities			1,225,271		1,186,061
		TOTAL LIABILITIES		287,054,175		283,924,826

STOCKHOLDERS' EQUITY
	Common stock, no par value; 10,000,000 shares authorized,
	1,445,546 and 1,427,170 shares issued			16,337,352		15,976,335
	Retained earnings			16,131,950		14,959,891
	Accumulated other comprehensive loss			(1,239,265)		(677,088)
	Treasury stock, at cost; 94,297 shares in 2006 and 89,333 shares in 2005			(3,175,618)		(2,969,773)
		TOTAL STOCKHOLDERS' EQUITY		28,094,419		27,289,365

		TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	315,148,594	$	311,214,191

	MIDDLEFIELD BANC CORP.
	CONSOLIDATED STATEMENT OF INCOME
	(Unaudited)

				Six Months Ended
				June 30,
				2006		2005
INTEREST INCOME
	Interest and fees on loans		$	8,204,679	$	7,218,766
	Interest-bearing deposits in
	other institutions			7,393		3,940
	Federal funds sold			8,937		23,656
	Investment securities:
	Taxable interest			595,811		719,510
	Tax-exempt interest			493,591		395,140
		Dividends on FHLB stock		40,538		29,583
	Total interest income			9,350,949		8,390,595

INTEREST EXPENSE
	Deposits			3,218,694		2,664,364
	Short term borrowings			122,650		34,229
	Other borrowings			570,864		478,061
	Total interest expense			3,912,208		3,176,654

NET INTEREST INCOME				5,438,741		5,213,941

	Provision for loan losses			150,000		120,000

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES				5,288,741		5,093,941

NONINTEREST INCOME
	Service charges on deposit accounts			848,684		742,022
	Investment securities (losses), net			(5,868)		-
	Earnings on bank-owned life insurance			113,172		102,979
	Other income			188,993		162,618
	Total noninterest income			1,144,981		1,007,619

NONINTEREST EXPENSE
	Salaries and employee benefits			1,830,049		1,824,696
	Occupancy expense			267,847		259,363
	Equipment expense			192,686		215,114
	Data processing costs			336,786		297,998
	Ohio state franchise tax			180,000		180,000
	Other expense			1,126,395		1,082,345
	Total noninterest expense			3,933,763		3,859,516

	Income before income taxes			2,499,959		2,242,044
	Income taxes			694,587		611,000

NET INCOME			$	1,805,372	$	1,631,044

EARNINGS PER SHARE
	Basic		$	1.34	$	1.22
	Diluted			1.32		1.20

DIVIDENDS DECLARED PER SHARE			$	0.470	$	0.419

The Middlefield Banking Company, Member FDIC. Equal Housing Lender

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